finance
Federal Reserve Holds Benchmark Rate Steady at 3.5% to 3.75%
The Federal Reserve left its benchmark interest rate unchanged for the fourth consecutive meeting. Projections released with the decision point to a possible rate increase later this year amid rising inflation and energy prices.
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The Federal Reserve held its benchmark interest rate in the 3.5% to 3.75% range at the close of its meeting this week. The decision marks the fourth straight pause and the first under the current chairman. Projections released alongside the announcement indicated that inflation has returned above 4% while energy prices continue to climb.
Officials noted a significant possibility that the next policy move could be a rate increase rather than a cut, possibly before year-end.
Home equity lines of credit currently carry average rates just over 7%. Borrowers can draw funds as needed during the draw period and pay interest only on amounts used. Home equity loans offer a lump-sum payment with a fixed interest rate averaging 6.98%.
Monthly payments remain constant over the repayment term. Personal loans carry an average rate just under 12.3%. These unsecured loans provide fixed rates and payments without requiring home equity as collateral.
