The Fed lowered its forecast for the unemployment rate in 2020 to 3.5% from 3.7%, but inflation is still expected to remain a tick below 2% for the full year.
The bank also predicted gross domestic product — how fast the economy is growing — will expand at or slightly below a 2% annual pace for the next three years.
Will the Feds Cut Interest Rates in 2020?
Although JPMorgan expects the United States will avoid a recession in 2020, analysts there say the rates market are now implying a 90% chance of a run-of-the-mill US recession, (as opposed to a severe one like the 2008 Great Recession.)
Will interest rates increase in 2020?
Long-term rates follow the 10-year Treasury yield. As of March 2, 2020, the 10-year Treasury yield was 1.1%. The yields rise as sellers try to make the bonds more attractive. Higher Treasury yields drive up interest rates on long-term loans, mortgages, and bonds.
Will interest rates go down in 2020?
Will mortgage interest rates go down in 2020? According to our survey of major housing authorities such as Fannie Mae, Freddie Mac, and the Mortgage Bankers Association, the 30-year fixed rate mortgage will average around 3.7% through 2020.