Amid lingering inflation, the U.S. Federal Reserve lowered interest rates for the third time in 2024 on Wednesday.
The Fed reduced its benchmark rate by 0.25 percentage points to a range between 4.25% and 4.5%, down from its previous target range between 4.5% and 4.75%.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run,” the Fed said in a statement on Wednesday. “The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.”
On Dec. 11, the Bureau of Labor Statistics reported the Consumer Price Index (CPI) rose 2.7% from the previous year in November, and 0.3% from October.
The index for shelter also went up 0.3% in November from the prior month, with the food index rising 0.4% and the energy index sparking 0.2% higher.
The indexes for meats, poultry, fish and eggs jumped 1.7% in November, while the indexes for beef and eggs went up 3.1% and 8.2%, respectively.
Meanwhile, U.S. homeowners now pay 17.4% more for new insurance policies as factors like inflation, severe weather and reinsurance costs impact the market.
“The average homeowner who bought their policy in 2021 was paying nearly 69% more three years later at their 2024 renewal, or an extra $865 annually,” Matic said. “As of November, however, rate growth showed signs of tapering; the average increase for new policies dropped from 10.7% in the first half of the year to 6.6% in the second half, indicating early signs of stabilization.”
The slideshow above illustrates the top 10 most expensive large U.S. cities for household bills as selected by doxo.
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