With the Fed announcing the rise of interest rates in December of 2018, speculation began to stir around what the expectations for 2019 would be. With the release of the minutes from December’s meeting, experts and speculators have been given a little more information on what to expect from the Fed in future months.
According to the Wall Street Journal earlier this week, experts believe that December’s interest rate increase will be the last major increase for a few months. Most believe interest rates will stabilize for the next few months, due to the hesitancy seen in the December meeting notes. Representatives from Fed, including Boston Fed President Eric Rodengren, believe this pause in interest rate changes will give the Fed time to observe the effects that the global market and trade relations will have on the U.S. economy.
Another factor the Fed must take into account is the ongoing government shutdown. With the shutdown in it’s 4th week, it is the longest government shutdown in U.S. history. Shutdowns have happened in the past, but the longer it lasts, the more visible the economic effects will be.
The more time allotted for observation, the more of an informed decision the Fed will be able to make. The Fed will be meeting again at the end of the month.
“The domestic and international growth” will determine the future of interest rates, says Rodergren.
