The Wall Street Journal wrote, “The Federal Reserve held interest rates steady and signaled no appetite to raise them soon. After lowering rates at their three previous meetings to guard the US economy from the effects of trade tensions and a global slowdown, Fed officials on Wednesday indicated comforts with leaving monetary policy on hold through next year while keeping an eye on those risks.”
For now, the Fed Funds rates (short term) rates for debt instruments like HELOC’s will remain the same, and could throughout all of 2020 unless the economic “winds” change direction. The biggest determinant factor affecting whether rates will rise is the fear of inflation getting reignited. However, in another article, they wrote, “Inflation isn’t likely to take off anytime soon, recent readings on prices and labor costs show. Also, the unemployment rate hit a 50-year low in November, but this has yet to translate into a meaningful pickup in inflation.” In other words, all is good for the economy and rates for now!
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