The Federal Reserve is leaving interest rates unchanged this month saying that while inflation has moved higher, it’s likely to “run near” the central bank’s 2% target in the coming months after years of low inflation.
Bankrate chief financial analyst Greg McBride wasn't surprised to see the Central Bank hold between 1.5% to 1.75%, the highest in a decade.
“The Federal Reserve is going to continue to raise interest rates, the next meeting in June is almost a lock when we are going to see rates go up again,” he says. “The question that has to be answered is just how many more rate hikes are we going to get in 2018?”
The Fed predicts the U.S. economy will keep expanding at a “moderate” pace qne hiring will remain strong.
“This is still the time to be taking aggressive action against your variable rate debt, pay off those high-interest rate credit cards, pay down the variable rate line of credit, and refinance out of those adjustable-rate mortgages,” says McBride.