Speculation Mounting that Fed will Cut Interest Rates – RVBusiness – Breaking RV Industry News

Federal Reserve Chairman Jerome Powell (AP file photo)

WASHINGTON — With inflation edging closer to the Federal Reserve’s 2% target, its policymakers are facing — and in some cases fueling — hopes that they will make a decisive shift in policy and cut interest rates next year, possibly as soon as spring, according to an Associated Press report.

Such a move would reduce borrowing costs across the economy, making mortgages, auto loans and business borrowing less expensive. Stock prices could rise, too, though share prices have already risen in expectation of cuts, potentially limiting any further rise.

Fed Chair Jerome Powell, though, has recently downplayed the idea that rate reductions are nearing. With the central bank poised to keep its key short-term rate unchanged when it meets this week, Powell hasn’t yet signaled that the Fed is conclusively done with its hikes. Speaking recently at Spelman College in Atlanta, the Fed chair cautioned that “it would be premature to conclude with confidence” that the Fed has raised its benchmark rate high enough to fully defeat inflation.

Source: https://rvbusiness.com/speculation-mounting-that-fed-will-cut-interest-rates/