Following a year of declining interest rates, 2020 looks to be a year of stability, with fewer economic risks and low inflation giving the Federal Reserve little reason to shift interest rates. Borrowing costs are low, making it a great time to take on debt for a long-term purchase.
After the Federal Reserve raised rates four times in 2018, leading to investor skepticism and a downturn in stocks, the nation’s central bank walked back three of those increases in the second half of 2019. And the stock market followed a strong first half rebound with a solid performance in the second half of the year.
Now Fed watchers expect rates to stay flat in the year ahead. Inflation remains modestly below the central bank’s two percent target, giving the Fed justification for keeping rates lower for longer.
Source: Bankrate
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