The Economic Perspective: “Where Will Interest Rates Go this Year?”

I’m Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program asks where interest rates will go this year.  Mike, the Federal Reserve reversed course in 2019 and lowered interest rates.  Will there be a repeat performance by the Fed in 2020?

Mike:  Summary Answer

  • In its recent statements, Fed has indicated they will hold rates steady for the foreseeable future
  • But Fed’s goal is to keep the economy growing yet still with low inflation
  • Inflation doesn’t seem to be an issue now
  • If China trade war continues to move toward settlement, economy should grow enough for Fed to keep rates in check
  • But if Fed decides to raise rates – watch for adverse impacts on the stock market
  • I’m MW

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.