Fed Rate Hold Sparks Shift as Interest Rates Rise

On Wednesday, the Federal Reserve held its benchmark rate at 3.50%, 3.75% for the fifth consecutive meeting.

This decision marked a shift in expectations, as only two years ago there was a single question on everyone's mind: when will the Fed cut rates?

Now, with three regional Fed presidents voting against holding rates steady, and instead advocating for an immediate hike, markets are starting to reconsider their assumptions.

According to recent research from the San Francisco Fed, forces that previously drove up savings have begun to fade or reverse. Meanwhile, new claims on the pool of available money are growing, pushing the clearing rate upward.