{"id":138588,"date":"2024-12-19T00:37:47","date_gmt":"2024-12-18T17:37:47","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=138588"},"modified":"2024-12-19T00:37:47","modified_gmt":"2024-12-18T17:37:47","slug":"live-updates-fed-is-poised-for-another-rate-cut","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=138588","title":{"rendered":"Live Updates: Fed Is Poised for Another Rate Cut"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<p>The Federal Reserve is expected to lower its key rate by another quarter point on Wednesday, marking its third consecutive cut since September. In total, rates will have dropped by a full percentage point since then.<\/p>\n<p>That\u2019s good news for borrowers, who should see rates decline in a similar fashion on credit cards, home equity and other loans. With <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/live\/2024\/12\/11\/business\/cpi-inflation-fed#what-to-know-about-the-report\" title=\"\">inflation ticking<\/a> slightly higher, it may be the last reduction for a while, though everyone will be listening for fresh clues about where rates may be headed in 2025.<\/p>\n<div>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">The Fed\u2019s benchmark rate stands at about 4.6 percent. In an effort to tamp down sky-high inflation, the central bank began lifting rates rapidly \u2014 from near zero to a high of 5.33 \u2014 between March 2022 and July 2023. Prices have cooled considerably since then, and the Fed pivoted to rate cuts three months ago.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Since then, however, the course has become less clear cut. <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/11\/07\/business\/economy\/federal-reserve-november-meeting.html\" title=\"\">Stronger economic data<\/a>, coupled with potentially inflation-stoking polices from an <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/11\/07\/business\/economy\/trump-federal-reserve-powell-interest-rates.html\" title=\"\">incoming President-elect<\/a> Donald J. Trump, could make more cuts unnecessary.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Here\u2019s what to watch for in five key areas of your financial life, as rates fall now.<\/p>\n<div data-testid=\"imageblock-wrapper\">\n<figure class=\"img-sz-medium css-d754w4 e1g7ppur0\" aria-label=\"media\" role=\"group\"><figcaption data-testid=\"photoviewer-children-caption\" class=\"css-gbc9ki ewdxa0s0\"><span class=\"css-jevhma e13ogyst0\">Auto rates and car prices have been trending lower but remain elevated, making affordability a challenge. Dealership incentives and discounts to attract buyers are expected to continue.<\/span><span class=\"css-14fe1uy e1z0qqy90\"><span class=\"css-1ly73wi e1tej78p0\">Credit&#8230;<\/span><span><span aria-hidden=\"false\">David Zalubowski\/Associated Press<\/span><\/span><\/span><\/figcaption><\/figure>\n<\/div>\n<h2 class=\"live-blog-post-content css-19v2tje eoo0vm40\" id=\"link-361a97e3\">Auto Rates<\/h2>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\"><strong class=\"css-8qgvsz ebyp5n10\">What\u2019s happening now: <\/strong>Auto rates and car prices have been <a class=\"css-yywogo\" href=\"https:\/\/www.coxautoinc.com\/market-insights\/august-2024-atp-report\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">trending lower<\/a> but they still remain elevated, making affordability a challenge. Dealerships have been offering more incentives and discounts to attract buyers, and that\u2019s expected to continue.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Car loans tend to track with the yield on the five-year Treasury note, which is influenced by the Fed\u2019s key rate. But other factors determine how much borrowers actually pay, including your credit history, the type of vehicle, the loan term and the down payment. Lenders also take into consideration the levels of <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/03\/08\/your-money\/car-loans-rates.html\" title=\"\">delinquent auto loans<\/a>. As those <a class=\"css-yywogo\" href=\"https:\/\/www.newyorkfed.org\/newsevents\/news\/research\/2024\/20240806\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">move higher<\/a><a class=\"css-yywogo\" href=\"https:\/\/www.newyorkfed.org\/microeconomics\/hhdc.html?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=sendto_newslettertest_business&amp;stream=top#_ga=2.68431761.1607202077.1726503359-521718139.1726503359\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">,<\/a> so do rates, which makes qualifying for a loan more difficult, particularly for those with lower credit scores.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">The average rate on new car loans was 6.8 percent in November, <a class=\"css-yywogo\" href=\"https:\/\/www.edmunds.com\/car-loan-apr-interest-rate\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">according to Edmunds<\/a>, a car shopping website, down from 7.4 percent in the same month in 2023 and up from 6.6 percent in 2022. Rates for used cars were higher: The average loan carried an 11 percent rate in November, slightly lower than 11.6 percent last November but up from 10.2 percent in November 2022.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\"><strong class=\"css-8qgvsz ebyp5n10\">Where and how to shop: <\/strong>Once you establish your budget, get preapproved for a car loan through a credit union or bank (Capital One and Ally are two of the largest auto lenders) so you have a point of reference to compare financing available through the dealership, if you decide to go that route. Always negotiate on the price of the car (including all fees), not the monthly payments, which can obscure the loan terms and what you\u2019ll be paying in total over the life of the loan.<\/p>\n<h2 class=\"live-blog-post-content css-19v2tje eoo0vm40\" id=\"link-59ab0f67\">Credit Cards<\/h2>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\"><strong class=\"css-8qgvsz ebyp5n10\">What\u2019s happening now: <\/strong>The interest rates you pay on any balances that you carry should fall after the Fed has acted, though it may not be instant and it will vary by card issuer. Last week, the average interest rate on credit cards was 20.35 percent, according to <a class=\"css-yywogo\" href=\"https:\/\/www.bankrate.com\/credit-cards\/advice\/current-interest-rates\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">Bankrate<\/a>.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Much depends, however, on your credit score and the type of card. Rewards cards, for instance, often charge higher-than-average interest rates.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\"><strong class=\"css-8qgvsz ebyp5n10\">Where and how to shop: <\/strong>This year, the Consumer Financial Protection Bureau <a class=\"css-yywogo\" href=\"https:\/\/www.consumerfinance.gov\/about-us\/newsroom\/cfpb-report-finds-large-banks-charge-higher-credit-card-interest-rates-than-small-banks-and-credit-unions\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">sent up a flare<\/a> to let people know that the 25 biggest credit-card issuers had rates that were 8 to 10 percentage points higher than smaller banks or credit unions. For the average cardholder, that can add up to $400 to $500 more in interest each year.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Consider seeking out a smaller bank or credit union that might offer you a better deal. Many credit unions require you to work or live someplace particular to qualify for membership, but some bigger credit unions may have <a class=\"css-yywogo\" href=\"https:\/\/finance.yahoo.com\/personal-finance\/credit-unions-anyone-can-join-170123360.html\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">looser rules<\/a>.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Before you make a move, call your current card issuer and ask them to match the best interest rate you\u2019ve found in the marketplace that you\u2019ve already qualified for. And if you do <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2015\/02\/22\/your-money\/credit-card-balance-transfer-can-reap-savings-if-done-cautiously.html\" title=\"\">transfer your balance<\/a>, keep a close eye on fees, whether your initial interest rate expires and if so, what it might jump to.<\/p>\n<div data-testid=\"imageblock-wrapper\">\n<figure class=\"img-sz-medium css-d754w4 e1g7ppur0\" aria-label=\"media\" role=\"group\"><figcaption data-testid=\"photoviewer-children-caption\" class=\"css-gbc9ki ewdxa0s0\"><span class=\"css-jevhma e13ogyst0\">The average rate on a 30-year fixed-rate mortgage was 6.79 percent as of Thursday, up from 6.72 percent the previous week but down from 7.5 percent this time last year.<\/span><span class=\"css-14fe1uy e1z0qqy90\"><span class=\"css-1ly73wi e1tej78p0\">Credit&#8230;<\/span><span><span aria-hidden=\"false\">Martina Tuaty for The New York Times<\/span><\/span><\/span><\/figcaption><\/figure>\n<\/div>\n<h2 class=\"live-blog-post-content css-19v2tje eoo0vm40\" id=\"link-64f41bea\">Mortgages<\/h2>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\"><strong class=\"css-8qgvsz ebyp5n10\">What\u2019s happening now: <\/strong>Mortgage rates <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/11\/07\/business\/fed-mortgage-rates.html\" title=\"\">have been volatile<\/a>. Rates peaked at about 7.8 percent late last year, and had fallen as low as 6.08 percent in late September. But strong economic data and concerns about President-elect Trump\u2019s potentially inflationary agenda nudged rates higher again.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Rates on 30-year fixed-rate mortgages don\u2019t move in tandem with the Fed\u2019s benchmark, but instead generally track with the yield on 10-year Treasury bonds, which are influenced by a variety of factors, including expectations about inflation, the Fed\u2019s actions and how investors react.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">The average rate on a 30-year fixed-rate mortgage was 6.60 percent as of Thursday, down from 6.69 percent the previous week and 6.95 percent a year ago.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Other home loans are more closely tethered to the central bank\u2019s decisions. Home-equity lines of credit and <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2022\/06\/03\/your-money\/adjustable-rate-mortgage.html\" title=\"\">adjustable-rate mortgages<\/a> \u2014 which carry variable interest rates \u2014 generally adjust within two billing cycles after a change in the Fed\u2019s rates.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\"><strong class=\"css-8qgvsz ebyp5n10\">Where and how to shop<\/strong>: Prospective home buyers would be wise to get several <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/interactive\/2017\/realestate\/What-Kind-of-Mortgage-Should-I-Get.html\" title=\"\">mortgage<\/a> rate quotes \u2014 on the same day, since rates fluctuate \u2014 from a selection of mortgage brokers, banks and credit unions.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">That should include: the rate you\u2019ll pay; any <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/03\/15\/business\/home-closing-costs-rise.html\" title=\"\">discount points<\/a>, which are optional fees buyers can pay to \u201cbuy down\u201d their interest rate; and other items like lender-related fees. Look to the \u201c<a class=\"css-yywogo\" href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/what-is-the-difference-between-a-mortgage-interest-rate-and-an-apr-en-135\/#:~:text=What%20is%20a%20mortgage%20APR,pay%20to%20get%20the%20loan.\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">annual percentage rate<\/a>,\u201d which usually includes these items, to get an apples-to-apples comparison of your total costs across different loans. Just be sure to ask what\u2019s included in the A.P.R.<\/p>\n<h2 class=\"live-blog-post-content css-19v2tje eoo0vm40\" id=\"link-2fb14667\">Savings Accounts and C.D.s<\/h2>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\"><strong class=\"css-8qgvsz ebyp5n10\">What\u2019s happening now: <\/strong>The rate reversal is likely to be most disappointing for savers, who have benefited from juicier yields on everything from online <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2023\/02\/03\/your-money\/savings-account-rates-banks.html\" title=\"\">savings<\/a> accounts and certificates of deposit to <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/09\/06\/business\/interest-rates-falling-downside.html\" title=\"\">money market funds<\/a>. Those are all likely to inch lower, in line with the Fed\u2019s move, but some providers may move faster than others. That usually depends on whether the bank wants to attract new customers by dangling yields that are more attractive than their competitors\u2019 offerings.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">But you can safely assume that online high-yield savings account will still offer the most competitive rates, with some banks still offering yields of 4.5 to 5.05 percent, according to Bankrate. Traditional commercial banks\u2019 yields, meanwhile, have remained anemic throughout this period of higher rates. The national average savings account rate was 0.56 percent in mid-December, according to Bankrate.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\"><strong class=\"css-8qgvsz ebyp5n10\">Where and how to shop: <\/strong>Rates are one consideration, but you\u2019ll also want to look at <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/08\/10\/business\/online-lending-banking-money-risks.html\" title=\"\">providers\u2019 history<\/a>, minimum deposit requirements and any fees (high-yield savings accounts don\u2019t usually charge fees, but other products, like money market funds, do). DepositAccounts.com, part of the online loan marketplace LendingTree, tracks rates across thousands of institutions and is a good place to start comparing providers.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">If you\u2019re considering certificates of deposit, now is probably the time to lock in a decent rate if you haven\u2019t already. Online C.D.s with a one-year term averaged 3.70 percent in December, according to DepositAccounts.com, down from 4.1 percent in July.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Check out our colleague Jeff Sommer\u2019s recent <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/08\/16\/business\/money-market-funds-rates-inflation.html\" title=\"\">columns<\/a> for <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/09\/06\/business\/interest-rates-falling-downside.html\" title=\"\">more insight<\/a> into money-market funds. The yield on the <a class=\"css-yywogo\" href=\"https:\/\/cranedata.com\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">Crane 100 Money Fund Index<\/a>, which tracks the largest <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/08\/16\/business\/money-market-funds-rates-inflation.html?pgtype=Article&amp;action=click&amp;module=RelatedLinks\" title=\"\">money-market funds<\/a>, was 4.42 percent as of Monday, down from 5.13 percent at the end of July.<\/p>\n<div data-testid=\"imageblock-wrapper\">\n<figure class=\"img-sz-medium css-d754w4 e1g7ppur0\" aria-label=\"media\" role=\"group\"><figcaption data-testid=\"photoviewer-children-caption\" class=\"css-gbc9ki ewdxa0s0\"><span class=\"css-14fe1uy e1z0qqy90\"><span class=\"css-1ly73wi e1tej78p0\">Credit&#8230;<\/span><span><span aria-hidden=\"false\">Bridget Bennett for The New York Times<\/span><\/span><\/span><\/figcaption><\/figure>\n<\/div>\n<h2 class=\"live-blog-post-content css-19v2tje eoo0vm40\" id=\"link-7536c585\">Student Loans<\/h2>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\"><strong class=\"css-8qgvsz ebyp5n10\">What\u2019s happening now:<\/strong> There are two main types of student loans. Most people turn to federal loans first. Their interest rates are fixed for the life of the loan, they\u2019re far easier for teenagers to get and their repayment terms are more generous.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\"><a class=\"css-yywogo\" href=\"https:\/\/studentaid.gov\/understand-aid\/types\/loans\/interest-rates\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">Current rates<\/a> are 6.53 percent for undergraduates, 8.08 percent for unsubsidized graduate student loans and 9.08 percent for the PLUS loans that both parents and graduate students use. Rates reset on July 1 each year and follow a formula based on the 10-year Treasury bond auction in May.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Private student loans are a bit of a wild card. Undergraduates often need a co-signer, rates can be fixed or variable and much depends on your credit score.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\"><strong class=\"css-8qgvsz ebyp5n10\">Where and how to shop: <\/strong>Many banks and credit unions want nothing to do with student loans, so you\u2019ll want to shop around extensively, including with lenders that specialize in private student loans.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">You\u2019ll often see online ads and websites offering interest rates from each lender that can range by 15 percentage points or so. As a result, you\u2019ll need to give up a fair bit of information before getting an actual price quote.<\/p>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/live\/2024\/12\/18\/business\/fed-interest-rates\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve is expected to lower its key rate by another quarter point on Wednesday, marking its third consecutive cut since September. In total, rates will have dropped by &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=138588\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-138588","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/138588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=138588"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/138588\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=138588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=138588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=138588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}