economy

Federal Reserve May Not Raise Interest Rates This Month After All

A top Federal Reserve official suggests the central bank won't raise borrowing costs this month, shifting expectations about future rate moves.

By Piggy PressSep 3, 20262 min read

In simple terms

Interest rate changes affect how much you pay on credit cards, mortgages, and car loans—and how much interest you earn in a savings account. If the Fed holds rates steady instead of raising them, borrowing money might stay cheaper for you.

The Federal Reserve is the central bank of the United States — think of it as the bank that controls banking policy and sets a key interest rate that affects what you pay on mortgages, car loans, and credit cards. Every month or so, Fed leaders meet to decide whether to raise, lower, or hold that rate steady. Christopher Waller, one of the Fed's top officials, recently said the Fed should not raise rates right now. His argument carries real weight because he's a decision-maker in these meetings.

When the Fed raises interest rates, borrowing becomes more expensive for everyone — companies hold back on expansion, and families think twice before taking out loans. The Fed typically raises rates to fight inflation (when prices rise too fast) or lowers them to help the economy grow. Waller's public case for holding rates steady suggests other Fed leaders might agree, which means the chance of a rate increase happening this month is now lower than markets expected before his comments.

Fun fact

The Federal Reserve meets roughly eight times a year to decide on interest rates. Each meeting creates headlines because these decisions ripple through the entire economy—affecting everything from job hiring to stock prices to your rent.

Economy

Source: MarketWatch Top Stories