#BreakingNews: The Federal Reserve has held its key interest rate unchanged, opting against a cut as it continues to weigh up whether economic indicators are trending in the right direction.https://t.co/6LW4rcjWi5
— Mortgage Professional America Magazine (@MPAMagazineUS) June 12, 2024
“Employment has outperformed. And look at the number we got on Friday (June 7), with 272,000 new jobs created,” she said. “Yes, the previous month’s numbers were reduced lower, but that was still a much stronger number than anyone was expecting.
“My sentiment would be that we need to be pleasantly surprised with weaker economic data and more modest job gains before we’re going to see the Fed feel confident and comfortable enough in order to enact a rate cut.”
The good news for borrowers: the Fed appears to have firmly ruled out the prospect of further rate hikes despite the economy’s unexpected strength.
“[Powell] did say that no-one is expecting for there to be any further rate hikes,” Cohn said. “There’s been talk back and forth in the press over the course of the past few weeks about the potential, perhaps, for having to have a rate hike. So the fact that that is effectively off the table at the moment is at least a good sign.”
Could the Fed really leave rates where they are for the rest of the year?
The answer to when the Fed’s expected one rate cut of 2024 will take place remains unclear. Cohn’s expectation is at some point between September and November, although she cautioned that the impending presidential election may convince the Fed to wait until after November 5 to make its move.
