U.s. Federal Reserve Again Keeps Interest Rates Steady

Interest rates are not changing, at least for now, according to the U.S. Federal Reserve.

On Wednesday, the U.S. central bank announced that it was maintaining its target range for federal funds of 4.25% to 4.5%, representing the fifth straight meeting where the Fed chose not to cut interest rates.

The decision was not unanimous, with two members of its committee, Michelle Bowman and Christopher Waller, pushing the body to lower the target range for the federal funds rate by one-fourth of a percentage point.

During a press conference Wednesday, Fed Chair Jerome Powell said he was waiting to see how current tariff rates affect the economy with regard to inflation.

“Higher tariffs have begun to show through more clearly to prices of some goods, but their overall effects on economic activity and inflation remain to be seen,” Powell said during the press conference.

Powell added that “we’re well positioned to learn more about the likely course of the economy and the evolving balance of risks before adjusting our policy stance” and that “we see our current policy stance as appropriate to guard against inflation risks.”

Last September, the Fed cut interest rates by 50 basis points, and lowered them again in December. Though the moves amounted to “psychological relief” to some in the senior living industry, they also believe that lower interest rates could unlock more M&A activity, help communities with floating-rate mortgages pay back debt maturities and obtain financing at more favorable rates.

On that front, the industry is already plenty busy with a wave of interest from investors, including from some new entrants to senior living.

The next Federal Reserve meeting is scheduled for September.

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