Fed Holds Rates Steady as Lubbock Households Weigh Borrowing Costs

The Federal Reserve left its benchmark interest rate unchanged Wednesday, keeping the target range at 3.75% to 4% as inflation remained above its goal.

The decision passed by a vote of 10 to two. The two dissenting members preferred an increase of a quarter percentage point. Policymakers described economic activity as strong and said domestic spending remained resilient.

For Lubbock residents comparing loans, the announcement leaves the central bank’s target where it was before the meeting. That benchmark influences short term borrowing and savings rates across the economy.

Mortgage rates follow a less direct path. They also reflect bond markets, expected inflation and the risks of lending over many years. A decision in Washington does not require every lender to offer the same rate or keep every loan quote unchanged.

The committee said more information will guide its next move. It did not guarantee a date for a rate reduction.

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Photo Via ABC 7 NEWS