The Federal Reserve held rates steady Wednesday afternoon, dashing hopes for a summer cut, but builders are adjusting their strategies to stay on the job.
Contractors hoping for relief from the Federal Reserve will have to wait a while longer.The central bank held its benchmark federal funds interest rate steady Wednesday afternoon in the range of 4.25% to 4.5%. The decision disappointed builders that had hoped for a jolt to jumpstart stalled projects.
The pause also keeps heat on Fed Chair Jerome Powell. President Donald Trump has repeatedly pressured Powell to cut rates and has even floated firing him. Legal experts say a president’s authority to do so is dubious, except for cause.
The administration has been trying to build a case for just such a cause, though, calling into question costs for the $2.5 billion renovation at the Fed’s headquarters, which Trump visited last week.
But after Wednesday’s decision, Trump — and general contractors rooting for a rate cut — will have to sit tight for now...
RSK: It is not all high interest rates that make construction dicey, a labor shortage is also part of the equation. See next article below...
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- - Volume: 25 - WEEK: 32 Date: 8/5/2025 1:57:01 PM -