Fed cuts interest rate target
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Social Security Cost Of Living Adjustment (COLA) Changes After Fed Cuts Rates Again
The U.S. Federal Reserve’s latest interest rate cut of a quarter percentage point lowered the benchmark federal funds rate to a range of 3.5%-3.75% in mid-December. This move continues to spark optimism among market participants,
The Federal Reserve cut interest rates by a ¼-point yesterday, as expected. The stock market rallied and Treasury yields fell. Read more here.
The Federal Reserve ordered another quarter-point cut to its federal funds rate, but not without dissents among the rate-setting committee.
HELOC rates could fall in 2026 if the Fed rate-cutting trend continues, but there are other possibilities, too.
The Fed’s rate-setting Open Market Committee voted 9-3 to make a .25% cut to its federal funds rate, bringing the interest range down to 3.5% to 3.75%, the lowest in three years. While approved by a wide majority, a rate vote by the FOMC hasn’t seen three dissenting votes since 2019.
The cut of a quarter point will likely make it cheaper for average Americans to secure a mortgage, pay credit card debt or finance a car.
Prospect of higher borrowing costs in Eurozone, Australia and Canada could leave Federal Reserve as an outlier in 2026