Fed to Begin 2-Day Meeting: Will It Change Interest Rates?

The Federal Reserve is commencing a two-day meeting, drawing close attention from Wall Street and consumers regarding the US economy's health and future interest rates. Despite inflation remaining a concern, a weakening job market might prompt the Fed to lower interest rates today to support employment. Signs of slowing job growth and an uptick in long-term unemployment, nearing pandemic highs, indicate this shift.

A potential rate cut could bring relief to borrowers, with mortgage rates already drifting down in anticipation. Credit card interest rates, currently around 20%, and car loan rates at 7% could also see decreases if further cuts occur later this year. In other news, a potential deal is emerging to keep the popular social media platform operational, following concerns of a ban by Congress. A framework for an agreement, potentially involving some US ownership, is being discussed, with a possible announcement expected after a call between the US and Chinese presidents.

• The Federal Reserve is holding a key two-day meeting to address economic concerns.
• A cut in interest rates is anticipated to support a weakening job market, despite inflation remaining elevated.
• Long-term unemployment is nearing its highest point since the pandemic.
• Potential interest rate cuts could offer relief for mortgage rates (already drifting down) and credit card debt (around 20%) and car loans (at 7%).
• A framework for an agreement concerning the social media platform is developing, potentially involving US ownership and avoiding a ban.

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Fed Meeting and Interest Rates [00:04]

• A key two-day meeting by the Federal Reserve is underway, closely watched by Wall Street and American consumers.
• Looming questions exist about the health of the US economy and the future of interest rates.
• The Fed has not changed interest rates since late last year, and high rates have been a strain on American families.
• Inflation is still considered a bit too high for the Fed's comfort.
• The job market appears to be weakening.
• To support the job market, the Fed is likely to trim interest rates today.
• The unemployment rate is 4.3%.
• Under the surface, signs indicate that job growth has been slowing.
• Long-term unemployment, for those out of work for six months or longer, is ticking up and is close to its highest level since the pandemic.
• The Fed will likely cut rates to support the economy.

The Fed to support the job market likely to trim interest rates uh here today. And that's what this is really about. You've got a 4.3% unemployment rate, but underneath the hood, there are some signs that job growth has been slowing.

Impact of Interest Rate Changes [01:11]

• If interest rates are cut, it would be great news for those trying to buy a house or a car.
• Mortgage rates and interest rates in general have been stuck for almost a year.
• The 30-year fixed-rate mortgage has already been drifting down as the market anticipates the Fed cutting rates.
• The current 30-year fixed mortgage rate is the best seen in 10 or 11 months.
• Credit card interest rates are at a dangerous level, around 20%.
• Car loans are at 7%.
• A cut tomorrow, followed by one or two more later this year, would provide some relief for people borrowing money.

Credit card interest rates, you don't need me to tell you that that number there is not a good number, 20%. That credit card debt is dangerous. So, be careful.

Social Media Platform Discussion [01:53]

• There was news yesterday about a possible deal concerning a popular social media site.
• There appears to be a framework for an agreement to keep the platform operational.
• The president and the treasury secretary have made statements about this.
• The platform is a very popular social media site used by many kids and adults.
• There were concerns that the platform might go dark by Wednesday because the US Congress had voted to ban or close it.
• Under the Biden administration, and previously under the Trump administration, there had been executive orders to close it down.
• It looks like there's some sort of a deal possibly involving some US ownership, though the owner is unknown.
• The president of the United States and the president of China are expected to speak on Friday and potentially announce the framework of that deal.

Uh, no, look, there looks like there's a framework for an agreement. the president and the treasury secretary has said to keep Tik Tok operational.