Federal Interest Rate Hike’s Potential Impact on Texas Real Estate Market
The central bank signaled one more increase this year as inflation stayed above target and 10-year Treasury yields climbed past 5%.
- The Federal Open Market Committee unanimously voted on Wednesday to raise interest rates by 25 basis points to between 3.75 and 4 per cent, seeking a "timelier return" to the Fed's 2 per cent inflation target.
- After holding rates steady since January, the Fed pivoted following August consumer price index data showing inflation at 3.4 per cent, well above its long-term 2 per cent target.
- Yields on 10-year US Treasury bonds surged past the 5 per cent threshold amid long-term inflation uncertainty, while at least 12 of 18 policymakers expect one more rate hike before year-end.
- White House spokesperson Kush Desai called the hike "rather unfortunate," while Trump stated on Truth Social that rates should be "1%, or less" because "we are the Best Credit in the World."
- Australia's RBA faces pressure to raise rates at its September 28-29 meeting, with analyst Bassanese arguing further increases will add downward pressure on house prices and slow consumer spending.
12 Articles
12 Articles
US Federal Reserve raises interest rates for first time since 2023, adding ‘pressure’ on RBA and Aussie house prices
The US Federal Reserve‘s shock call to raise interest rates for the first time since 2023 could push the Reserve Bank of Australia (RBA) to hike rates here, hitting house prices even harder, an expert warns.
Impact of U.S. Federal Reserve interest rate hike on Canadian dollar and borrowers
The U.S. Federal Reserve raised interest rates for the first time in three years on Wednesday, a move that could increase pressure on the Bank of Canada, according to multiple economists. The implications for Canadian monetary policy remain uncertain as markets respond.
The Federal Committee on the Open Market (FOMC) states that inflation remains "high" and above the Fed's 2% target, and has taken the decision unanimously.
Wednesday the Fed, with unanimous vote, raised the rates, first time from 2023. The first great act of the chairman guaranteed by the White House was a monetary tightening, not a loosening
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