Happening Now: Fed Chair Jerome Powell speaks on interest rates, economy

Federal Reserve Chair Jerome Powell is expected to announce the first interest rate cuts by the central bank in more than a year on Wednesday afternoon.

The Federal Open Market Committee (FOMC) has maintained a range of 5.25 percent to 5.5 percent since July of last year — the highest such range in 23 years.

The range is expected to drop by at least a quarter of a percentage point, although Powell has indicated that a return to the run of bargain-basement rates spanning the 2008 financial crisis through the pandemic isn’t planned.

Still, even a modest reduction should help further alleviate mortgage rates, which are now at least back to the levels seen in February 2023.

WGN’s Chip Brewster is providing live coverage beginning at 2:15 p.m. EDT.

[minionsystems]

2% is about 4% too high. We are being charged for increases in productivity. I know the fed wants to keep inflation going because they can't go below zero on interest rates but we are still paying for productivity gains and should not be.

[justincadle]

The lack of housing supply verbiage is beyond old. If someone wants a home they can buy one. I don’t know anyone that can’t build a home if they have money or need a mortgage. There’s an affordability crisis in this country. Every middle class person I know thinks about high prices everyday.

[JerzyNowak-]

I hope Trump fires this FED guy!
I think lower interest rates may lead to inflation coming back. Lower rates will likely weaken the US dollar. I think that market expectations should rather not dictate the conditions whether to cut or not.