The Fed has just announced they have decided to remain in a "paused" mode and will NOT be making any changes to the Fed Funds Rate at this time. But as expected - Fed President Jeffrey Lacker still disagreed with the vote, and said another .25% hike was needed.
Because the Fed Funds Rate influences many Adjustable Rate loans, as well as being tied to the Prime Rate - the Fed's decisions can impact you greatly, especially if you are one of the millions of Americans who have an Adjustable Rate Mortgage, Home Equity Line of Credit, credit cards, or any one of the other debts impacted by the Fed Funds Rate or Prime. So for now, a continued "pause" is good news.
The Fed's main charge is to control inflation - not just for us, but for our future generations as well. And although inflation remains above the Fed's "comfort zone", they appear willing to be patient a bit longer, and see if their previous string of seventeen rate hikes will be enough to help inflation settle back down. In fact, the Fed said that it expects inflation to moderate in the coming months.
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