{"id":15268,"date":"2025-03-22T12:38:21","date_gmt":"2025-03-22T11:38:21","guid":{"rendered":"http:\/\/13.40.57.130\/?p=15268"},"modified":"2025-04-23T08:07:04","modified_gmt":"2025-04-23T06:07:04","slug":"why-hasnt-the-fed-lowered-interest-rates","status":"publish","type":"post","link":"https:\/\/ustaxconsultants.pt\/pt-pt\/why-hasnt-the-fed-lowered-interest-rates\/","title":{"rendered":"Why hasn’t the Fed lowered interest rates?"},"content":{"rendered":"

\"\"This past week there has been speculation about expectations of interest rate cuts and how they would affect you if they happen, but the Federal Reserve, which determines whether or not they are lowered, has ultimately not lowered them for now, although it warns that everything could change.<\/p>\n

Despite market expectations and political pressure, the Federal Reserve has decided to keep interest rates in the 4.25%-4.50% range. Why?<\/p>\n

    \n
  1. Persistent inflation: Although it has fallen from its peak, inflation remains at 2.7%, above the 2% target. The Fed doesn’t want to risk a return to inflation if it eases policy too soon.<\/li>\n
  2. Resilient economy: Despite some signs of a slowdown, the labor market remains strong and consumer spending continues to drive the economy. The Fed prefers to wait for more evidence of a real need before acting.<\/li>\n
  3. Avoid past mistakes: If rates are lowered too quickly, inflation could surge. The Fed learned from the 1970s crisis and doesn’t want to make the same mistake.<\/li>\n
  4. Projections: Two rate cuts are expected in 2025, but this will depend on how inflation and economic growth evolve in the coming months.<\/li>\n<\/ol>\n

    Why does Trump want rates to be lowered?<\/strong><\/p>\n

    President Donald Trump has pushed for lower interest rates, and here’s why:<\/p>\n

      \n
    1. Stimulate the economy: With lower rates, credit is more accessible, which could increase consumption and investment, boosting growth.<\/li>\n
    2. Weaken the dollar: A weaker currency would make US exports more competitive in the global market.<\/li>\n
    3. Reduce the cost of debt: US public debt has exceeded $34 trillion, and with high rates, the government pays more in interest. If rates fall, the cost of financing debt would also decrease.<\/li>\n<\/ol>\n

      What could this mean for you?<\/strong><\/p>\n

      Mortgages and loans: If the Fed lowers rates, mortgages and loans could become cheaper.<\/p>\n

      Dollar: A cut could weaken the dollar, impacting on those who manage income in this currency.<\/p>\n

      Stock market: Lower rates usually benefit stocks, but they can also increase volatility.<\/p>\n

      Conclusion: There are no cuts yet, but if inflation continues to fall and the economy slows, they could come in the coming months. Pay attention to the Fed’s next decisions!<\/p>\n

      Feel free to comment on this blog about how this decision affects you. US Tax Consultants<\/a>:<\/strong> Tell us your opinion.<\/p>\n

      From Sonia Finanzas Personales<\/a> blog<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

      This past week there has been speculation about expectations of interest rate cuts and how they would affect you if they happen, but the Federal Reserve, which determines whether or not they are lowered, has ultimately not lowered them for now, although it warns that everything could change. Despite market expectations and political pressure, the […]<\/p>\n","protected":false},"author":5,"featured_media":15280,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"class_list":["post-15268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t