Latest news with #JulyMeeting
Yahoo
09-07-2025
- Business
- Yahoo
Will The Fed Lower Interest Rates In July? Policymakers Are Split, FOMC Minutes Show
Federal Reserve policymakers are split on whether to cut interest rates in July, minutes of the Federal Open Market Committee's June meeting showed. "A couple" members of the 12-vote committee said they were open to a July cut, while most said they expected to cut rates at some point this year. "Some" members said it was likely the fed would not change its key interest rate at all in the Federal Reserve bring Christmas in July for borrowers? That depends on which of two factions prevails when the central bank's policy committee meets at the end of the minutes of the Federal Open Market Committee's June meeting, released Wednesday, show growing disagreement over whether the Fed should adjust its influential fed funds rate at its July 30 meeting. On one side are those who believe inflation is tame enough to justify cutting rates, and on the other are members who are more worried that tariffs could drive up prices for consumers, potentially dealing a setback to the Fed's mission to drive inflation down to its goal of a 2% annual newly published meeting minutes highlighted a divide already evident from Fed officials' public speeches. The officials are split about how they expect the economy to respond to President Donald Trump's ongoing and sometimes unpredictable campaign of cranking up import taxes on numerous products and trading partners. The federal funds rate influences borrowing costs on all kinds of loans, and bringing it down could boost the economy, but possibly at the risk of reigniting the high inflation that has plagued U.S. consumers since the late days of the officials have also said they're concerned about the possibility of tariffs dragging down the economy and hurting the job market. Congress has tasked the Fed with keeping employment high and fighting inflation. Some fed officials were more concerned about possible tariff-driven inflation than others, according to the minutes."Most participants assessed that some reduction in the target range for the federal funds rate this year would likely be appropriate, noting that upward pressure on inflation from tariffs may be temporary or modest," the minutes said. "A couple of participants noted that, if the data evolve in line with their expectations, they would be open to considering a reduction in the target range for the policy rate as soon as at the next meeting."But with inflation still running hotter than the Fed would like, some FOMC members stayed more hawkish. "Some participants saw the most likely appropriate path of monetary policy as involving no reductions in the target range for the federal funds rate this year, noting that recent inflation readings had continued to exceed the Committee's 2% goal." Consumer prices as measured by "core PCE" (the Fed's preferred inflation benchmark) increased 2.7% over 12 months when last measured in May. The measure was headed in the wrong direction, moving away from the Fed's 2% goal. Meanwhile, the job market has stayed resilient, according to official reports on payrolls, potentially buying more time for the Fed to keep rates steady and see what only "a couple" of the committee's 12 voting members favoring a July cut, financial markets continued to price in the likelihood the Fed won't cut rates at least until September, according to the CME Group's FedWatch tool. The tool forecasts rate movements based on fed funds futures trading data."The FOMC is comfortable remaining in wait-and-see mode," Jeffrey Roach, Chief Economist for LPL Financial, wrote in a commentary. "Despite headwinds, the economy continues to trudge along, giving policymakers time to assess the projected impact from tariffs. Ever since last week's payroll release, markets do not expect the FOMC will cut rates later this month." Read the original article on Investopedia Sign in to access your portfolio
CBS News
08-07-2025
- Business
- CBS News
CD moves savers should make before the July Fed meeting
Savers considering a deposit into a CD account should be prepared to make some strategic moves now, before the July Fed meeting.A certificate of deposit (CD) account is a relatively easy type of savings vehicle to manage. You deposit a certain amount of money into it, keep it in the account untouched for a select period (or term), and then withdraw it upon maturity, gaining access to both your deposit and any interest earned during that time. But while the account operates in a relatively standard way, it should still be approached strategically, especially in today's unique economic landscape. With another Federal Reserve meeting set for the end of July, then, and with talk over potential interest rate cuts rising (which could impact CD rates), savers may be best served by making some strategic moves first. Below, we'll detail three CD moves savers should make now, before the July 29 Fed meeting formally kicks off. Start by seeing how high a CD rate you'd currently qualify for here. CD moves savers should make before the July Fed meeting Here are three smart CD moves savers should strongly consider making before the July Fed meeting: Calculate their deposit amount and term length CD early withdrawal penalties can be expensive, potentially negating all or most of the interest earned to date on the account. To avoid having to pay this fee, savers looking to open a CD while rates are still high should start by carefully calculating their deposit amount and term length. These savers should be positioned to deposit as much money into an account as they can, but they should also be positioned to leave it there untouched until the account matures. If you can't, you may need to adjust your deposit amount or term length – or both. Just be sure to complete these calculations now, before the rate climate potentially changes – and your interest-earning potential wanes – at the end of July. Explore CD rates and terms here now. Shop for banks online If you're looking for the highest CD rate possible ahead of future rate climate changes, then forego your local banking branch location and instead shop for banks online. These institutions don't have the expenses of maintaining a physical location and, accordingly, are often able to pass on those savings to account holders via higher rates on CDs and other accounts. And with the possibility of a rate cut looming, if not for July then later this summer, it's critical that you find the highest rate possible right now. Online banks can help accomplish this goal. Lock in a high rate when located Once you find that high-rate CD account online, and once you've determined the amount of money you can afford to deposit (and the term in which you can keep it in), you must lock in the rate as soon as you can. While many experts don't expect the Fed to cut rates when it meets again this July, comments made after that meeting could be powerful enough to shake the rate climate, particularly if they imply that rate cuts are likely for the central bank's next meeting in September. So don't wait for that possibility to become a reality. Lock in a high rate when located and protect your money (and earn interest) even in the face of rate cuts ahead. The bottom line With CD interest rates still comfortably in the 4% range but the reality that these rates won't remain this high for much longer, savers will need to be strategic in their approach. That extends to making the above three moves now, before the July Fed meeting. But, depending on your financial circumstances, goals and budget, it may involve even more steps to take. Still, it wasn't that long ago that rates here were hovering around 1% so it's worth taking the time to get things right. No one knows when this opportunity will present itself again so you'll want to take advantage with a CD account while you still can.
Yahoo
23-06-2025
- Business
- Yahoo
Fed's Bowman may support July rate cut, citing mild inflation
Federal Reserve governor Michelle Bowman says she's open to an interest rate cut at the central bank's July meeting, citing concerns about the employment side of the Fed's dual mandate. Yahoo Finance Senior Fed Reporter Jennifer Schonberger reports the latest. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here.
