The Federal Reserve is still playing wait and see on interest rates. Nothing the policymakers are saying following the most recent meeting of the Federal Open Market Committee (FOMC) changes our view that interest rate hikes are still months away.
We look for a rate increase no sooner than the Nov. 2-3 FOMC meeting, right after Election Day. Our best guess is that hike will be followed by another quarter-point increase in December. Until then, the fed funds rate, which banks charge each other on overnight loans, will remain near zero, where it has been since December 2008. The rate is an important benchmark for many businesses and households, and the prime rate typically marches in lockstep with it.
Looking at the economy, the FOMC broke little new ground in its post-meeting statement, repeating most of its statement from January. Among the few changes, the Fed cites a labor market that is “stabilizing,” while housing construction is “flat at a depressed level.” The most widely watched language remains the same as the past several months: Referring to interest rates, the FOMC says the fed funds rate will be “exceptionally low…for an extended period.” That language at the FOMC meeting in January brought one dissenting vote, and it brought one dissent this time around, too.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For weekly updates on topics to improve your business decisionmaking, click here.
-
Last Call for Fortnite Refunds: Parents Can Still File a ClaimThe FTC is sending out $126 million in refunds to families whose kids were charged for unwanted items in Fortnite — and there’s still time to file a claim.
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade TalksDespite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
Blue Collar Workers Add AI to Their ToolboxesThe Kiplinger Letter AI can’t fix a leak or install lighting, but more and more tradespeople are adopting artificial intelligence for back-office work and other tasks.
-
Will State Laws Hurt AI’s Future?The Kiplinger Letter Republicans in Congress are considering a moratorium on state AI laws. But it’s likely a growing patchwork of state AI regulations will be here for a while.
-
The New AI Agents Will Tackle Your To-Do ListThe Kiplinger Letter Autonomous AI agents “see” your computer screen, then complete a task, from buying a concert ticket to organizing email. This opens up a world of possibilities.
-
AI’s Medical RevolutionThe Kiplinger Letter Medicine is a field ripe for finding both exciting and practical uses for AI. The tech is already being used by doctors and researchers.
-
The Economic Impact of the US-China Trade WarThe Letter The US-China trade war will impact US consumers and business. The decoupling process could be messy.
-
AI Heads to WashingtonThe Kiplinger Letter There’s big opportunity for AI tools that analyze MRIs and other medical images. But also big challenges that clinicians and companies will have to overcome.
-
The AI Doctor Coming to Read Your Test ResultsThe Kiplinger Letter There’s big opportunity for AI tools that analyze CAT scans, MRIs and other medical images. But there are also big challenges that human clinicians and tech companies will have to overcome.
-
The New Space Age Takes OffThe Kiplinger Letter From fast broadband to SOS texting, space has never been more embedded in peoples’ lives. The future is even more exciting for rockets, satellites and emerging space tech.
