The Federal Reserve voted to leave interest rates unchanged last Wednesday and signaled that it’s not in any hurry to resume raising rates in 2019. Fed Chairman Jerome Powell used words like “patient” to describe the Fed’s latest approach to increases. His change in tone follows four rate hikes last year. The Fed’s benchmark rate is not directly tied to mortgage rates but does often influence them.
“In light of global economic and financial developments and muted inflation pressures, the committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate,” a statement from the Federal Reserve read. The Fed said that economic activity has been “rising at a solid rate” and it does expect continued growth, but noted several political uncertainties—such as fallout from the government shutdown—and a slowdown in foreign economies as reason for a more cautionary approach.