>> Well, the Federal Reserve
holds a critical meeting The
question will they issue an
interest rate what will the
decision be? Will they raise
it? Will they joining us to
talk about the possible
outcomes and their potential
impact? We’ve got bank rates,
chief financial analyst Greg
McBride with us. Greg, good
morning. How you doing?
>> Great. Thanks for having me
this morning.
>> All right. So you’ve got to
hopefully get your crystal ball
out of frame. What what do you
think they’re going to do
today?
>> Yeah, I think this is going
to, you know, break with recent
tradition, if you will, either
going to hold rates steady
today. That follows 10
consecutive rate increases
dating back to March of last
year, but they won’t
necessarily signal that there
are Don altogether. And the
fact is they could resume
raising rates. And what happens
to you? Why if the economic
data points over that
direction?
>> All right. So how do you
describe this moment? That is
the sort of like, okay, let’s
let’s let’s take a pause and
kind of wait and see. Do we
know at this point if the last
10 increases did what they
wanted them to do?
>> Those last 10 increases are
having a fact. It’s probably
not happening as quickly as
we went with regard to
inflation. But between the
cumulative effect of those 10
rate hikes, which hasn’t fully
been baked into the economy
yet. Plus, the expectation that
credit is going to tighten
further what the Federal
Reserve has been warning to do
is basically they don’t want to
overdo it, raise rates too
much. They wanted to take a
step back. Look at the big,
bigger picture, buy themselves
some time and holding steady on
rates today allows them to do
that. They don’t meet again
until the end of July to get a
couple rounds of economic data
and then they get evaluated
that point whether they need to
resume raising rates or not.
>> All right. So for people in
the market for loans, I guess
whether cars, homes, things
like that. How the decision
today not to raise it again.
How does that impact the price
or cost a gust of those loans?
>> You know, a lot of these
loans say they move in advance
of the Things like mortgage
rates and auto loans. I don’t
I’m going to respond to whether
the Fed hikes rates today are
not buy it. That we do see
expectations of rains are going
to go up later that year.
course of the summer.
Regardless, borrowing rates are
still very, very high. Credit
card rates are the highest on
record mortgage rates and home
Mir behind the 20 years.
Farming is going to continue to
be very expensive. Even if the
vents stays on the sidelines.
>> Any idea how long that takes
to kind of reverse in for rates
to maybe start coming down or
get back to that level. We were
so we’ve so enjoyed that one to
3%, whatever it was back, then.
>> Well, we have to be careful
what we wish for. I low rates
that we’ve enjoyed for the
better part of 15 years where
we have byproduct of a pretty
sluggish economic environment
during that period of time.
Yes, inflation was low, but so
was things like job growth and
wage growth. And so for the
Federal Reserve to reverse
course and start cutting
interest rates, the economy
would basically have to roll
over. So, you know, if those
forecasts a recession on the
bass and the Federal Reserve
will likely start to cut rates
will probably not until next
year the economy is actually
hanging in there by nicely.
And inflation still stubbornly
high. That’s really what’s
forcing the end.
>> Imagine takes a special
person to want the recession
before you go. Let me ask you
what we’ve been reading.
Some economists are saying that
these consecutive rate hikes
have ended the so-called great
resignation when tens of
millions of people quit during
the pandemic. A move a little
bit following. You think that
trend continues? Or is that
over?
>> Well, the idea of these rate
hikes is really pump the brakes
on the economy. In part of that
is really cool in the
labor market. Yeah, some of the
great resignation seemed to be
easing a bit, but we still have
a very tight labor market.
There’s over 10 million open
jobs, fewer than 6 million
unemployed workers. And so, you
know, we still have a very
tight labor market and we will
continue to great heights to
the cumulative effect of those
rate hikes over time will cool
the labor market. But we just
haven’t seen much of that to
this point.
>> Bankrate chief financial