Little to No Relief Expected this Week Over Interest Rates – RVBusiness – Breaking RV Industry News
WASHINGTON — The odds of further interest rate cuts this year by the Federal Reserve dwindled last week as unemployment fell and more officials say they want to see how new policies from the White House affect the economy, according to an Associated Press report.
While Fed officials penciled in two rate cuts this year at their December meeting, economists and Wall Street investors are increasingly skeptical, with some predicting no reductions at all this year. On Friday, economists at Morgan Stanley said they now expect just one rate cut in 2025, and investors also expect just one — in July — according to pricing in futures markets.
Fewer cuts could translate into a longer period of elevated mortgage rates and high costs to borrow money for everything from autos to credit cards. Still, mortgage rates are closely tied to the yield on the 10-year Treasury note, which can move independently of the Fed’s actions.
The shifting expectations come as Chair Jerome Powell heads to Capitol Hill for two days of testimony this week, beginning Tuesday, before House and Senate committees that oversee the central bank and the financial industry. Fed chairs are required by law to appear before Congress twice a year.
Click here to read the full Associated Press report.
