Interest Rates Stay Put After September Fed Meeting

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This month the Fed put a pause on its extended campaign against inflation, holding the interest rate steady and giving borrowers a breather after 11 hikes since March 2022. During the meeting, the Fed said it will hold the federal funds rate in a 5.25% - 5.5% range, the same level from last meeting. The central bank is attempting to tame the hottest inflation seen in four decades without pushing the economy into a recession. This pause on rate hikes is a welcome sign to residential real estate investors who are watching the market closely for any housing affordability relief that will bring buyers out to house hunt. But, unfortunately, there may be one more rate hike on the horizon this year depending on economic conditions.

"We're prepared to raise rates further, if appropriate," Fed Chair Jerome Powell said. He added, "The majority of [Fed meeting] participants believe it is more likely than not for us to raise rates one more time in the two remaining meetings this year.”

When can we expect a rate cut? Powell wouldn’t make a prediction, but added that, “the time will come at some point.” For now the Fed is focused on monitoring economic data and ensuring that inflation subsides to the target 2% a year.

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