Local financial expert say costs will remain steady as Federal Reserve holds interest rates

THE WHITE HOUSE, HE SAYS THINGS COULD BE CHANGING SOON IN SUPPORT OF OUR GOALS TODAY, THE FEDERAL OPEN MARKET COMMITTEE DECIDED TO LEAVE OUR POLICY INTEREST RATE UNCHANGED. WE BELIEVE THAT THE CURRENT STANCE OF MONETARY POLICY LEAVES US WELL POSITIONED TO RESPOND IN A TIMELY WAY TO POTENTIAL ECONOMIC DEVELOPMENTS WITH FEDERAL INTEREST RATES HOLDING STEADY FOR THE FIFTH TIME THIS YEAR. LOCAL FINANCIAL EXPERTS SAY NOT MUCH IS GOING TO CHANGE FOR CONSUMERS, AT LEAST FOR RIGHT NOW, FROM A BORROWING PERSPECTIVE, WITH THE FED IS KEEPING THE RATES WHERE THEY ARE. THINGS WILL BE A LITTLE BIT MORE. THE COST WILL REMAIN THE SAME FOR GRANITE STATERS AND FOR CONSUMERS, BUT FROM A PERSPECTIVE FROM, YOU KNOW, SAVINGS YOU HAVE THAT WILL REMAIN HIGH, WHICH IS WHICH IS GOOD. THE DECISION TO HOLD OFF COMES AS LEADERS WAIT TO SEE WHAT THE IMPACT OF TARIFFS WILL LOOK LIKE. THE TARIFF IMPACT MAY BE INFLATIONARY, AND ONE OF THE REASONS THEY DIDN’T CUT IS THAT IF THE TARIFFS CAUSE INFLATION, WHAT YOU DON’T WANT TO DO IS HAVE RISING PRICES AND THEN LOWER RATES. THAT’S GOING TO EXACERBATE INFLATION AND THE COSTS THAT WE PAY FOR GOODS AND SERVICES. HE SAYS THERE’S A CHANCE THAT RATES COULD COME DOWN. THERE IS PRESSURE FOR THE FED TO LOWER RATES. IF WE’RE GOING TO BE MAKING BIG PURCHASES WHERE WE MIGHT HAVE TO BORROW UP TO FINANCE THOSE PURCHASES, IT MAY MAKE SENSE TO WAIT A LITTLE BIT. NOW, TOLL SAYS. ALTHOUGH THEY ARE NOT DIRECTLY CONNECTED, YOUR INTEREST RATES ON THINGS LIKE YOUR MORTGAGE AND CREDIT CARD ARE LOOSELY TIED TO THE FEDERAL RESERVE RATE AND SAYS THAT WITH INTEREST RATES SO HIGH ON CREDIT CARDS, HE RECOMMENDS THAT PEOPLE PAY OFF THAT DEBT AS SOON

The Federal Reserve is holding the interest rate steady at 4.3% for the fifth time this year.”In support of our goals today, the Federal Open Market Committee decided to leave our policy interest rate unchanged,” Federal Reserve Chair Jerome Powell said. “We believe that the current stance of monetary policy leaves us well positioned to respond in a timely way to potential economic developments.”Local financial experts said the decision means little change for most consumers.”From a borrowing perspective, with the Feds keeping the rates where they are, things will be a little bit more. The costs remain the same, for Granite Staters and for consumers, but from an interest perspective, from, you know, savings, you have that will remain high, which is good,” said Sean Tole, a financial advisor at Davis Wealth Management.The decision comes as the Federal Reserve watches for the potential economic effects of tariffs imposed by President Donald Trump.>> Download the free WMUR app to get updates on the go: Apple | Google Play << “The tariff impact may be inflationary,” Tole said. “And one of the reasons they didn’t cut is that if the tariffs cause inflation, what you don’t want to do is having rising prices and then lower rates. That’s going to exacerbate inflation and the costs that we pay for goods and services.”Tole said that while mortgage and credit card rates are not directly tied to the Federal Reserve rate, they are loosely influenced by it. With credit card interest rates remaining high, he recommends consumers work to pay off debt quickly.Tole added that ongoing pressure from the White House could eventually lead to a rate cut. “There is pressure for the Fed to lower rates if we’re going to be making big purchases, well, we might have to borrow to finance those purchases. It may make sense to wait a little bit. >> Subscribe to WMUR’s YouTube channel <<

MANCHESTER, N.H. —The Federal Reserve is holding the interest rate steady at 4.3% for the fifth time this year.

“In support of our goals today, the Federal Open Market Committee decided to leave our policy interest rate unchanged,” Federal Reserve Chair Jerome Powell said. “We believe that the current stance of monetary policy leaves us well positioned to respond in a timely way to potential economic developments.”

Local financial experts said the decision means little change for most consumers.

“From a borrowing perspective, with the Feds keeping the rates where they are, things will be a little bit more. The costs remain the same, for Granite Staters and for consumers, but from an interest perspective, from, you know, savings, you have that will remain high, which is good,” said Sean Tole, a financial advisor at Davis Wealth Management.

The decision comes as the Federal Reserve watches for the potential economic effects of tariffs imposed by President Donald Trump.

>> Download the free WMUR app to get updates on the go: Apple | Google Play <<

“The tariff impact may be inflationary,” Tole said. “And one of the reasons they didn’t cut is that if the tariffs cause inflation, what you don’t want to do is having rising prices and then lower rates. That’s going to exacerbate inflation and the costs that we pay for goods and services.”

Tole said that while mortgage and credit card rates are not directly tied to the Federal Reserve rate, they are loosely influenced by it. With credit card interest rates remaining high, he recommends consumers work to pay off debt quickly.

Tole added that ongoing pressure from the White House could eventually lead to a rate cut.

“There is pressure for the Fed to lower rates if we’re going to be making big purchases, well, we might have to borrow to finance those purchases. It may make sense to wait a little bit.

>> Subscribe to WMUR’s YouTube channel <<