The much anticipated September Fed meeting took place this week, and the Federal Open Market Committee decided, based on many global economic factors, to keep the central bank's interest rate at 0 percent for the time being.
As discussed previously on this blog, U.S. Fed officials have kept the interest rate locked in at zero since the Great Recession began in 2008. This has been the precedent set to help stimulate growth in the economy - borrowers are more encouraged to take out loans when interest rates are low. Homeowners can refinance at lower rates and save money every month to invest, spend or pad savings accounts.
U.S. household worth hits all-time high
Speaking of homeowners' savings, the total wealth of American households has hit a staggering new peak of $85.7 trillion. The U.S. economy enjoyed a strong second quarter in which stocks rose higher along with home values - especially in hot markets like Denver.
However, the summer months got rockier as China's economy struggled and stock investors got nervous in anticipation of any movement by the Fed. The Dow Jones industrial average has dropped somewhat off from the spring's highs and ended this week down 1.5 percent in response to the Fed meeting.
Opinions differed greatly on whether the timing was right to finally start raising rates or wait until later this year or next year. While the U.S. economy has hit many solid benchmarks such as a 5 percent unemployment rate, wages and inflation are both lagging. Members of the FOMC will also keep an eye on global economic trends before moving interest rates upward.