"What news from the Feddermark!?"

FED Mar 2024 Meeting notes

The FOMC met on March 19-20 to continue discussing monetary policy. Borrowers were hoping to see rates go down, savers were hoping to see rates go up. What happened? Nothing. The rates are holding steady for now…again. The last rate change was in September 2023. Anyone who had borrowed money on a variable rate contract(like a credit card or HELOC) felt the pain after each meeting from 2022-2023 when rates were increasing rapidly. So, for borrowers, this is good news that rates aren’t increasing anymore. Once rates start to drop, the burden of borrowing money will be eased slightly as people pay a lower interest rate for money already borrowed.

Will the FED start cutting rates in 2024? From all indications, yes, that is still the plan. It isn’t happening as quickly as we thought it would back in 2023, but it should still happen. The first rate decrease likely won’t happen before June. During each meeting, the board looks at unemployment, inflation, and economic data to make a decision on what to do with rates. Inflation still is not down to 2% just yet. The stock market is doing well right now, certain economic numbers show a positive vibe, but the board is hesitant to make a move just yet. They said the pace of growth in the U.S. economy has slowed since 2023.

For practical purposes, nothing has changed. Your loan rates should stay the same. Savings/CD rates should stay the same as well, although banks may decide to lower those depending on competition.