In a majority vote today, the Federal Reserve decided to maintain the federal funds target range of 0.00 – 0.25%. It appears from the Fed’s newly released “dot plot” that most officials assume this target range will remain unchanged throughout the 2023 year.
With relative stability around the fed funds rate, the Committee turned its focus toward inflation. They seek to achieve maximum employment and inflation at the rate of 2 percent over the long run. With inflation running persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well-anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved. The Committee decided to keep the target range unchanged until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time.
Rates remain incredibly favorable for borrowers, and everyone should consider taking advantage. Favorable rates means homebuyers can qualify more easily with more purchasing power, or refinance their mortgages into a lower rate. Please contact an HFG Licensed Mortgage Professional near you if you’d like to learn more.