Fed meeting live updates: Fed set to cut rates — but market reaction may depend on size of move

Fed meeting live updates: Fed set to cut rates — but market reaction may depend on size of move


Here’s where consumer rates stand as markets anticipate a cut from the Fed

The Federal Reserve is expected to make its first cut to interest rates on Wednesday after more than two years of tight monetary policy. The central bank’s target rate range currently sits at 5.25% to 5.5%.

Higher rates have been tough on borrowers, with the rate on the 30-year fixed mortgage rising to 6.12% as of the week of Sept. 13, according to MND. That’s up from 4.29% during the week of March 11, 2022 – just prior to the Fed kicking off its first hike. Home equity loans have also become more expensive, with rates rising to 8.49% as of last week, compared to 5.96% back in March 2022, according to Bankrate. Credit card interest rates have also jumped more than 400 basis points since the Fed started its rate increases, rising to 20.78% as of last week, Bankrate found. One basis point is equal to one one-hundredth of one percent.

The Fed’s tight policy has provided a silver lining to savers, however. The annual percentage yield on a five-year certificate of deposit has jumped to 2.87%, up from 0.5% in March 2022, according to Haver. Yields on money market funds have also jumped, sitting at 0.46% last week, versus the 0.08% paid just before the Fed began tightening policy in March 2022, Haver found.

Darla Mercado, Nick Wells

Uncertainty around the possible size of Fed rate cut swirls ahead of the decision

In the hours leading to the Federal Reserve’s rate decision, investors remain split on the extent to which policymakers will cut rates.

Fed funds futures trading suggests a 55% likelihood that central bank officials will dial back rates by 50 basis points, according to CME FedWatch. They also imply a 45% probability of the Fed lowering rates by 25 basis points. Currently, the Fed’s target rate range is 5.25% to 5.5%. One basis point is equal to one one-hundredth of a percent.

Investors should watch what they wish for, according to Aditya Bhave, senior U.S. economist at Bank of America. The firm anticipates a 25 basis point cut on Wednesday, warning that a 50 basis point cut could ultimately be a worrisome sign.

“Risk assets might initially rally on the back of this dovish surprise,” Bhave wrote Wednesday. “But we’d caution investors that the act of cutting by 50bp means the Fed is less confident about a soft landing.”

 –Darla Mercado



Source

BRICS summit opens in Brazil, overshadowed by Trump’s tariff policies and Middle East tensions
World

BRICS summit opens in Brazil, overshadowed by Trump’s tariff policies and Middle East tensions

Brazil’s President Luiz Inacio Lula da Silva, China’s Premier Li Qiang, India’s Prime Minister Narendra  Modi, South Africa’s President Cyril Ramaphosa, Russia’s Foreign Minister Sergei Lavrov and other leaders, attend the opening meeting of BRICS Summit, at the Museum of Modern Art (MAM) in Rio de Janeiro, Brazil, on July 6, 2025. Ricardo Moraes | […]

Read More
Wimbledon: Ben Shelton pleaded for extra time off for his sister at Morgan Stanley. It worked
World

Wimbledon: Ben Shelton pleaded for extra time off for his sister at Morgan Stanley. It worked

Shelton’s girlfriend, U.S. soccer player Trinity Rodman, and his sister Emma applaud after Ben Shelton of the U.S. won his men’s singles third-round match against Marton Fucsovics of Hungary at the Wimbledon Tennis Championships in London, on Saturday, July 5, 2025. Alastair Grant | AP Photo Ben Shelton launched a public plea for his sister […]

Read More
Investors expect bitcoin to break out to new records in the second half from a consolidation phase
World

Investors expect bitcoin to break out to new records in the second half from a consolidation phase

Expect bitcoin to reach fresh all-time highs in the second half of the year as corporate treasuries accelerate their bitcoin buying sprees and Congress gets closer to passing crypto legislation, investors say. The cryptocurrency climbed nearly 30% in the second quarter although, strangely, many investors have called it a period of consolidation, with returns declining […]

Read More