FED RATE UPDATE!

Yesterday, the Federal Reserve announced it's leaving the fed funds interest rate unchanged at 4.25% - 4.5%, which is where it's been since their December meeting. I break it all down in my latest video. Click HERE to watch!

Here’s what you should know:

According to the Fed Chair Jerome Powell, the overall economy is strong, despite consumer sentiment being down. The total PCE inflation is 2.6% and the more important Core PCE inflation remains steady at 2.8%. Also, the labor market remains fairly strong with the latest reading at 4.1% unemployment rate, GDP growth was over 2% for the year ending 2024, and the housing market is stabilizing.
The Fed is holding steady and treading water while watching how the economy plays out before making any moves.
Stagflation concerns: Economists are watching for signs of stagflation, where inflation stays higher while the overall economy growth slows, making it harder for the economy to recover.
Tariffs complicate things: Uncertainty around import taxes and trade tensions could push prices higher and cause market instability, affecting the Fed's future decisions on interest rates.
The stock market has priced in 2 more rate cuts this year, and the Fed has confirmed the likelihood that this projection is unchanged, as well.
Next meeting: The Fed's FOMC meets next on May 6-7, 2025.

What this means for you

With an uncertain economy, it may be best to save a little additional cash that can be built into your emergency fund. With the threat of additional tariffs, the likelihood of increased prices, and a slowdown in the economy, is high. This could mean layoffs and a bump in the unemployment rate. It's always better to be safe than sorry. If you’re thinking about buying or refinancing a home, it might be smart to make a move now before things shift. Also, be careful about remaining calm and sticking to your investment plans, financial goals, and money strategies.