With investors panicked by the outlook, what does this mean for mortgages and savings accounts?
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Withinvestorspanickedbytheoutlook,whatdoesthismeanformortgagesandsavingsaccounts?
AmorecautiousandconservativeFederalReservewilllikelyinfluenceWallStreet’splaybookforthenewyear.
AttheDecemberpolicymeetingoftheFederalOpenMarketCommittee(FOMC),Fedofficialssignaledtothefinancialmarketsthattheywouldpursueaslowerpathofeasingthrough2025.Retailtradersandinstitutionalinvestorswereunhappy,althoughmarketwatcherswidelyanticipatedamoremethodicalapproachtonormalizinginterestratesamidrenewedinflationarypressures.
PanichittheNewYorkStockExchangewhentheFedupdatedtheSummaryofEconomicProjections.Thequarterlysurveyrevealedthatpolicymakersanticipatetwoquarter-pointinterestratecutsnextyear,downfromthepreviouslypenciled-infourreductionstothebenchmarkfederalfundsrate.
Policymakerspredictthemedianpolicyratewillreach3.9percentbytheendofnextyear,downfromthecurrentrangeofbetween4.25percentand4.5percent.
FederalReserveChairJ
