Lava Lovo

The Federal Reserve kept interest rates unchanged today at 4.50%, maintaining the level seen since December. This marks a dramatic shift from just a few years ago, when rates hovered near zero throughout the pandemic. For context, today’s 4.50% rate is still well below the historic highs of the early 1980s, when the Fed pushed rates to nearly 20% to crush runaway inflation. But it’s significantly higher than the ultra-low rates of the post-2008 era, when borrowing costs stayed close to zero for nearly a decade. The Fed began raising rates aggressively in 2022 to combat rising inflation, reaching a peak of 5.25% last year before initiating three cuts. Holding steady at 4.50% now signals a wait-and-see approach as policymakers monitor inflation and economic growth. Interest rates today remain high by recent standards, impacting everything from mortgages to credit cards—while markets look ahead to the next move from the Fed.