Fed holds off on November rate hike

• November 1, 2017
• realestate
• Announcements, Business & Markets, Real Estate, Real Estate Finance

The Federal Reserve will hold interest rates steady for another month, the central bank’s policy arm announced Wednesday.

The Federal Open Markets Committee is keeping the money market interest rate range between 1 to 1.25 percent, opting against a raise. The Fed last hiked rates in June, the second hike of 2017.
Fed officials are mulling how quickly to raise interest rates back toward historical averages as inflation sticks below the bank’s target range.

The Bureau of Labor Statistics consumer price index (CPI), the Fed’s preferred measure for inflation, showed in September a 2.2-percent price increase over the past year. September’s report was the first month since February to show inflation above the Fed’s 2 percent target.

Some of the Fed’s liberal members have expressed concerns about raising the interest rate range too quickly, restricting the money supply and driving down inflation. Fed hawks have insisted that the bank must bring rates quickly within higher historic averages to give the bank more room to respond to a financial crisis.