The Fed: Interest Rates Remain The Same

As expected, the Federal Reserve opted to keep it's key interest rate the same, due to the on-going battle to stop rising inflation.

After months of speculation and prognostication about 3 rate cuts in 2024, The Fed is now expected to issue just one rate cut by the end of the year.

"Unfortunately, inflation is still much too high" said economist EJ Antoni, "And the Fed just isn't willing to do what it's going to take to get it back down to 2%."

Over the past year, the Fed has held that rate at approximately 5.5%. In the meantime, APRs are more than 20% on most major credit cards, according to Bankrate, with mortgage and auto loan rates starting at 7%.

Fed officials are now admitting that their forecast is calling for inflation to end the year higher than they initially projected.

"We'll just have to wait and see, because this Federal Reserve has proven to be unpredictable" Antoni told KTRH, "It's not as if people are better off in any meaningful sense, they're just becoming worse off at a slower pace."

While speaking to reporters, Chairman Jerome Powell said it’s a “balancing act” to lower inflation, and then also manage the “very strong” labor market, and keep the economy growing."

Analysts say that lone rate cut could come in September.