Mohamed El-Erian, an economic expert, criticizes the Federal Reserve for relying too much on data, leading them to deviate from their strategy. He suggests a more long-term approach and potentially adjusting the inflation target closer to 3%. Recent statements from Fed policymakers indicate a potential shift towards this conservative stance.
Interest rates for credit cards, savings accounts, and mortgages remain elevated despite the Federal Reserve holding off on rate cuts. Credit card rates could stay high for the rest of 2024, while savings accounts continue to offer competitive interest rates but may moderate slightly over time. Mortgage rates, on the other hand, could decline to around 6% by year-end, potentially easing the tight housing market.
