Federal Reserve Holds Interest Rates - What You Need to Know!

💰The Federal Reserve has paused rate hikes for the second meeting in a row, keeping the federal funds rate between 5.25% and 5.5%.

💲The economy is showing strong growth, with job gains and low unemployment. GDP grew by 4.9% in Q3 of 2023.

🎉Inflation remains elevated, with a 3.7% increase in CPI for the 12 months ending in September 2023.

💸Housing prices have risen, but existing home sales have declined, potentially due to high mortgage rates.

💯Treasury yields offer attractive returns, leading some investors to move their money out of stocks and into treasuries.

How does the Federal Reserve's decision to pause rate hikes affect me?

—The decision means that interest rates on loans will likely remain stable, providing some relief for borrowers. However, it may also impact savings and investment returns, as savings account and CD rates may not increase.

What is the current state of the economy?

—The economy is experiencing strong growth, with job gains and low unemployment. GDP grew by 4.9% in Q3 of 2023, indicating a healthy economy.

Are housing prices still rising?

—Yes, housing prices have continued to rise. However, existing home sales have declined, potentially due to high mortgage rates.

Why are treasury yields attractive to investors?

—Treasury yields offer relatively safe returns compared to stocks, especially during uncertain economic times. Investors may move their money to treasuries for stability and reliable income.

What should I consider when preparing for 2024?

—Keep an eye on potential rate hikes by the Federal Reserve and how they may impact interest rates and the economy. Stay informed about market fluctuations and make investment decisions based on your risk tolerance and financial goals.

00:00The Federal Reserve held interest rates steady in their latest meeting.

02:00The economy is showing strong growth, with job gains and low unemployment.

04:00Inflation remains elevated, but recent data suggests some easing.

06:00Housing prices have risen, but sales have slowed.

08:00The stock market is performing well, but treasury yields are also attractive to investors.