Article updated on Jul 31, 2024
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Written by Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.
Edited by Courtney Johnston Senior Editor Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. A New Jersey native, she graduated with an M.A. in English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor.
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CNET staff -- not advertisers, partners or business interests -- determine how we review the products and services we cover. If you buy through our links, we may get paid.
Reviews ethics statementWhy You Can Trust CNET Money
Our mission is to help you make informed financial decisions, and we hold ourselves to strict . This post may contain links to products from our partners, which may earn us a commission. Here’s a more detailed explanation of .
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Key takeaways
- The Federal Open Market Committee voted to hold the federal funds rate at a target range of 5.25% to 5.50% for an eighth consecutive time.
- Experts predict the Fed will make at least one rate cut in 2024, with most expecting it to come in September.
- Higher interest rates make borrowing more expensive, whether you’re applying for a mortgage or paying off credit card debt.
The Federal Reserve once again held interest rates steady, but Fed Chair Jerome Powell said a “rate cut could be on the table at the September meeting” if the data continues to show inflation and employment coming into balance.
Powell spoke following today’s Federal Open Market Committee meeting, where the Fed voted to leave the federal funds rate at a target range of 5.25% to 5.50%. Powell sounded much more positive than he did earlier this year when inflation appeared to be stalling. Overall, Powell said the economy “is so much better than where we were a year ago.”
This story is a part of Fed Watch, CNET’s coverage of the Federal Reserve’s Open Committee meetings and what’s next for interest rates.
His comments support most experts’ predictions that an interest rate cut is on the way in September, with some optimists betting on two cuts before the end of the year. Those cuts could finally spell some relief for Americans who’ve been waiting for rates to drop before taking out a new loan or mortgage, as well as those paying off high-interest credit card debt.
The Fed began raising interest rates two years ago in an effort to bring down inflation, which is currently at 3% year over year but peaked at 9.1% in June 2022, according to Consumer Price Index data. The Fed has held interest rates at its two-decade high since last summer in an effort to bring inflation down toward its target of 2%.
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Written by
Tiffany Connors
Editor
Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.