Sader Law Firm Blog - Kansas City Bankruptcy Attorney Blog

Federal Reserve officials recently left interest rates unchanged and forecast a decrease in borrowing costs by the end of the year as inflation eases. Rates are being held at 5.3%, having remained steady since July 2023. After battling inflation for nearly two years, they are not quite ready to dismiss inflation entirely, and are therefore keeping rates at a higher level in an effort to weigh on inflation. Alongside this decision, policymakers released their quarterly economic estimates, which project that borrowing costs will be at 4.6% by the end of 2024. This suggests that policymakers will still likely make three quarter-point rate cuts this year. A recent New York Times article reported that the goal of these decisions is to ensure that inflation cools down to a normal level without an economic slowdown. With higher interest rates, the goal is to bring price increases under control while also trying to…
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For the first time in nearly a decade, the national average FICO score has decreased, signaling that many Americans are experiencing some level of financial stress during a time of inflation and high interest rates. This drop has occurred despite historically low unemployment rates and as fears of recession fade. In October 2023, FICO released data showing the national average FICO score came in at 717, down from 718 in July. FICO shared that this recent one-point drop was a result of an increase in missed payments and rising debt levels for borrowers. While this average score remains near record high, and is above pre-pandemic levels, this marks the first decrease since October 2013, when scores fell by two points from April. “The effects of high interest rates and persistent inflation may be starting to weigh on consumers, especially those already struggling to manage their finances,” said Can Arkali, FICO’s…
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