Low interest rates have bolstered the housing market, and many waited in anticipation to see what the Federal Reserve would do next after three rate cuts this year. The answer? Nothing. The reserve’s committee decided to hold the rates steady through 2020. The decision was unanimous as members considered factors such as the inflation rate and the GDP forecast. And despite projected hikes in the next four years, there are expected to be few in 2020.
The Federal Reserve held interest rates steady following its two-day meeting this week and indicated that no action is likely next year amid persistently low inflation.
Concluding a year that saw the central bank take down its benchmark rate three times, the Federal Open Market Committee on Wednesday met widely held expectations and kept the funds rate in a target range of 1.5%-1.75%.
In its statement explaining the decision, the committee indicated that monetary policy is likely to stay where it is for an unspecified time, though officials will continue to monitor conditions as they develop. The decision to keep rates unchanged was unanimous, following several dissents in recent meetings.
