Today, the Federal Open Market Committee cut interest rates by 25 basis points – the third and final rate cut of 2024. Groundwork Collaborative Senior Fellow Kitty Richards reacted with the following statement:
“If you remove shelter from the equation, inflation has been at or near the Fed’s 2% target since May 2023. For 18 months the Fed has been fighting a ghost while making it more expensive to buy or build homes and driving up costs for every American with a car loan or student debt, or who needs a credit card to make ends meet during tough times.
“The Fed thankfully did not throw millions of people out of work with its historic rate hiking campaign, but it slowed the labor market and taxed away worker’s wage growth through higher borrowing costs. Interest rates should have been cut much sooner, and should be normalized as quickly as possible, so any step in that direction is a welcome relief to families struggling to pay their mortgage.”
Email press@groundworkcollaborative.org to speak with one of Groundwork’s experts about the FOMC meeting.