SPRINGFIELD, Mass. (WWLP) – The Federal Reserve announced its final interest rate decision of the year on Wednesday.
The Federal Reserve decided to leave interest rates where they are, – a sure sign that inflation is starting to slow and take some of the pressure off our wallets.
On Wednesday the Federal Reserve decided to keep the borrowing steady between 5.25 and 5.5 percent. This is the third consecutive time the rates have remained the same. This move was anticipated by financial analysts who say this will have quite an impact on the purchasing power of the average American family.
“As soon as we get real estate under control which is 40 percent of the component of inflation, then we really will probably have disinflation – and they will probably have to cut rates many times in the next year and a half,” said Mark Teed, Senior Vice President for Raymond James and Associates.
Teed says there are other signs inflation is slowing, the 10-year treasury bond dropped by about 17 percent and the price of oil is going down as well. The stock market also responded well to this decision, rebounding after months of straight losses.
Alanna Flood is a reporter who has been a part of the 22News team since 2022. Follow Alanna on X @alannafloodnews and view her bio to see more of her work.