Posted on 01/28/2026 12:36:14 PM PST by Miami Rebel
The Federal Reserve on Wednesday voted to take a break from a recent run of interest rate cuts, as the central bank navigates questions about its independence and awaits a new leader.
Meeting market expectations, the central bank’s Federal Open Market Committee voted to keep its key interest rate in a range between 3.5%-3.75%. The decision put a halt to three consecutive quarter percentage point reductions, billed as maintenance moves to guard against potential downturns in the labor market.
In voting to hold the line, the committee raised its assessment of economic growth. It also eased its concerns about the labor market as compared with inflation.
“Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization,” the post-meeting statement said. “Inflation remains somewhat elevated.”
(Excerpt) Read more at cnbc.com ...
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President Trump and Secretary Bessent have used ambiguously dovish language regarding the sinking dollar.
If short-term* rates come down under the next chairman, look for the dollar to sink further. Metals and non-dollar denominated** assets look good going forward.
* Longer-term rates (including mortgages) will go UP in a loose money environment.
** Brazil (EWZ) is up 17% since January 1, Mexico (EWW) 10%.
Treasury rates think the rate should go up, not down nor steady.
4.86% on the 30...up another 2.8 basis points.
I had found a savings account that was paying almost 3% for a short while. After the fed cuts it is now paying under 2%. Meanwhile the savings I built up in my life are now worth next to nothing in purchasing power. One of the biggest mistakes I made in life was to try and be biblically responsible and save money. If you do that then this system will really *hit on you. Someone else gets to live all the value you tried to build up. Now the economy gets its Crack hit based on someone else’s suffering. But in the end there is a price to pay for the country for cheating for quick economic growth at the expense of building something that is stable and lasting. Older people who did not game the system well and take big risks in their life will be living under bridges.
“I had found a savings account that was paying almost 3% for a short while. After the fed cuts it is now paying under 2%. Meanwhile the savings I built up in my life are now worth next to nothing in purchasing power”
You need to broaden your search for higher rate savings accounts. I have a 4.2% yield account with on-line digital “Openbank” (big Spanish bank which I have zero issue with) I have been with them for over a year and zero issues bringing money in or out from my main account which is a zero interest USBank account used strictly for making payments.
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