Federal Reserve holds interest rates steady for third straight meeting

The Federal Reserve held interest rates steady at its latest meeting, marking the third consecutive meeting without a rate change. The decision was widely expected by markets, with CME FedWatch data showing a better than 95% probability of no change heading into the announcement.

Fed Chair Jerome Powell noted that while inflation has moderated from its peak, it remains above the central bank's 2% target. The committee statement acknowledged ongoing uncertainty around trade policy and geopolitical tensions, particularly the standoff with Iran and its potential impact on energy prices. The Fed's "patient" approach reflects a balancing act: moving too quickly to cut rates risks reigniting inflation, while waiting too long could tip a slowing economy into recession.

The "dot plot" projections from committee members suggest one to two rate cuts remain likely before year-end, but the timeline has shifted later than previously expected. Bond markets have adjusted accordingly, with the 10-year Treasury yield hovering near 4.3% as investors recalibrate their expectations.

What This Means For You: Mortgage rates and credit card APRs are staying elevated for now. If you're house hunting, don't wait for a dramatic rate cut — it may not come this year. Focus on what you can control: improving your credit score, shopping lenders, and building a down payment that gives you equity from day one.