This week, interest rates for small loans have remained steady. As of September 30th, mortgage rates showed only slight fluctuations, with the 30-year fixed mortgage rate at 5.875%.
At a recent conference hosted by the National Association for Business Economics, Federal Reserve Chair Jerome Powell discussed the current state of the U.S. economy and job market. He indicated that the Fed’s interest rate policy is currently undergoing a “recalibration,” highlighting that any future rate cuts will not be as rapid as those implemented during emergency measures. Powell confirmed plans for a 25 basis point rate reduction in both November and December, and he is expected to elaborate on recent decisions and future policy directions in an upcoming speech.
However, some industry experts have voiced concerns that the rate cuts made in September may have been too aggressive, potentially leading to adverse economic effects. Federal Reserve Governor Michelle Bowman echoed these concerns, advocating for more cautious cuts in her recent comments. The forthcoming inflation and employment data will be critical in assessing the Fed’s recent choices and will provide key insights into future policy directions. As this data emerges, the market will be closely watching whether the Fed can sustain economic stability while avoiding overzealous stimulus that could pose risks.
