The Federal Reserve’s decision Wednesday to leave interest rates alone for the first time in 11 meetings raises hopes that it may be nearing the end of its rate-hiking campaign to cool inflation, according to the Associated Press.
That said, the Fed’s policymakers indicated that they envision potentially two more hikes this year — more than had been expected. Even after the Fed has stopped hiking, it’s likely to keep borrowing rates at a peak for months to come. Consumers would still have to bear the weight of higher-cost auto loans, mortgages, credit cards, and other forms of borrowing.
Credit card rates, in particular, are at or near their all-time peaks, mortgage rates have more than doubled in two years, and auto loan rates have reached their highest level in about a dozen years. Even if rates were to hold steady, borrowing costs across the economy will remain much higher than they were in recent years.
