Sarah Hauer Milwaukee Journal Sentinel Published 6:43 p.m. UTC Jun 13, 2018 Borrowing is more expensive again. For the 40-plus million Americans with student debt, that sounds scary. The Federal Reserve hiked interest rates Wednesday, putting the federal funds rate between 1.75 percent and 2 percent. The central bank also signaled that it will likely increase rates at least one more time this year. The good news: Nothing will change to loans already taken out at fixed rates. But, said Greg McBride, senior vice president for Bankrate.com, if you have a variable-rate loan, the interest charged month to month could increase. "If you have a variable-rate student loan," McBride said, "that change will show up quickly." RELATED: Fed rate hike will add $2.2 billion in credit card interest charges Brenda Campbell, the president and CEO of SecureFutures, advises student loan holders to check with private lenders about rates. "You also should consider … [Read more...] about What do Fed interest rate hikes mean for student loans?
Fed funds rate
Last Updated Jan 26, 2011 5:16 PM EST The Federal Open Market Committee met to discuss the course of monetary policy, and, as expected, the Committee decided to keep the federal funds rate unchanged and to keep QE2 -- the $600 billion dollar asset purchase plan -- unchanged as well. The press release indicates that the committee does see the economy as being on firmer footing than it did in the last few meetings, but the improvement wasn't anywhere near enough to cause the Fed to seriously consider changing course. In addition, the recent rise in commodity prices is noted, but the stability of the general price level, the stability of inflation expectations, and the general state of the economy led the Fed to conclude that inflation is not yet a worry. But they clearly have their eyes on this, but the Committee notes that current conditions indicate "exceptionally low levels for the federal funds rate for an extended period." One additional point. This is the first meeting of … [Read more...] about The FOMC Keeps the Federal Funds Rate and QEII Unchanged
Last Updated Aug 9, 2011 5:35 PM EDT The Federal Reserve's Monetary Policy Committee met today and, as expected, decided to leave the federal funds rate in the 0 to 1/4 percent range. Of more interest is the Committee's decisions on additional policies it might pursue such as initiating QE3, lowering the rate it pays on reserves, and altering its communications strategy. Here is a list of the policies the Fed might have pursued, and what it actually decided: 1. A Change in Communications Press Release. For example, the Fed believes expectations are a key factor in the evolution of the economy, and by providing guidance on interest rate policy the Fed can affect expectations about the course of interest rates, prices, and other macroeconomic variables. The Fed provided more guidance than I expected on interest rates, saying that:The Committee currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over … [Read more...] about The Fed Says Rates Likely to Remain Low Through Mid-2013
By Bloomberg | PUBLISHED: January 31, 2018 at 12:55 pm | UPDATED: January 31, 2018 at 12:58 pm Federal Reserve officials, meeting for the last time under Chair Janet Yellen, left borrowing costs unchanged while adding emphasis to their plan for more hikes, setting the stage for an increase in March under her successor Jerome Powell. “The committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate,” the policy-setting Federal Open Market Committee said in a statement Wednesday in Washington, adding the word “further” twice to previous language. The changes to the statement, collectively acknowledging stronger growth and more confidence that inflation will rise to their 2 percent target, may spur speculation that the Fed will pick up the pace of interest-rate increases. Officials also said inflation “is expected to move up this year and to stabilize” around the goal, in … [Read more...] about Fed keeps rate unchanged as Yellen exits; sets up March hike
Craig Torres and Christopher Condon, Bloomberg Published 11:22 am, Wednesday, January 31, 2018 Photo: Bloomberg Photo By Andrew Harrer. Image 1of/1 CaptionClose Image 1 of 1 Federal Reserve Chair Janet Yellen during a news conference in Washington on Dec. 13, 2017. Federal Reserve Chair Janet Yellen during a news conference in Washington on Dec. 13, 2017. Photo: Bloomberg Photo By Andrew Harrer. Fed leaves rate unchanged as Yellen departs; sets up march hike 1 / 1 Back to Gallery Federal Reserve officials, meeting for the last time under Chair Janet Yellen, left borrowing costs unchanged while adding emphasis to their plan for more hikes, setting the stage for an increase in March under her successor Jerome Powell. "The committee expects that economic conditions will evolve in a manner that will warrant … [Read more...] about Fed leaves rate unchanged as Yellen departs; sets up march hike