FED Leaves Interest Rates Unchanged

The Federal Reserve announced it would keep interest rates unchanged for now, but hinted at a potential rate cut in September, citing progress on inflation and a cooling labor market. Lower borrowing costs for mortgages, auto loans, and credit cards could follow. The Fed emphasized its independence from political considerations, despite speculation that the timing of a rate cut could influence the upcoming election. While immediate effects may be felt in credit card interest rates, broader impacts such as mortgage rate reductions could take longer to materialize. Commentary from Fed Chair Powell highlighted the balance between taming inflation and maintaining a strong job market. The FED aims to return inflation to the 2% goal without causing undue economic strain.