Something dropped yesterday and we had to share it with you. At 2pm Eastern, the Federal Reserve announced what Wall Street nerds expected, that it would not change interest rates. Fed Chairman Powell commented that the U.S. central bank’s view is that the economy is healthy and that the slowdown in inflation is probably just for a hot minute. The U.S. economy has grown by 3.2% this year and the national unemployment rate is below 4% which supports the Fed’s decision.

Why do we care? Low interest rates help keep the cost of borrowing money down and supports the overall economy.

After the announcement, stocks rose slightly but ultimately ended the day down. As Chairman Powell was speaking; the 10-year treasury note yield (which affects mortgages and a few other loans) fell slightly and the U.S. dollar climbed higher compared to other currencies.

Have a great weekend Savvies!

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