Morning Business Report: Fed holds interest rates steady

The Federal Reserve held interest rates steady for the fifth meeting in a row, though three voting members indicated they are ready to raise rates.

(LILAMAX)- The Federal Reserve held interest rates steady for the fifth meeting in a row, though three voting members indicated they are ready to raise rates.

For consumers, that means borrowing costs on products such as car loans and credit cards are likely to remain steady for now. Rates on high-yield savings accounts and certificates of deposit are also expected to remain near current levels rather than falling.

The Fed meets again in September, when policymakers will take another look at inflation and the broader economy.

On Wall Street, the initial reaction to the Fed’s decision was relatively muted before selling accelerated late in the session as bond yields surged.

The Dow dropped about 1,100 points in its worst day of the year. The sell-off came as investors weighed the Fed’s rate decision, rising tensions in the Middle East and continued declines in semiconductor and artificial intelligence stocks.

Despite concerns over massive spending on AI, demand for skilled trades remains strong. Large projects are drawing plumbers and electricians to remote locations with some of the industry’s highest pay and bonuses.

River cruises are also gaining popularity. Celebrity Cruises plans to begin sailing European rivers next year, potentially bringing a different approach to a segment traditionally geared toward older adults.

Viking, which operates more than 90 river ships, says it plans to stick with its current model. The company does not allow passengers under 18, and executives say its clientele averages age 55 and older.

And chicken wing prices are falling. Wholesale whole-wing prices are down compared with a year ago, according to a July market report from Performance Foodservice.

Higher-than-expected chicken production has helped keep supplies strong and wholesale costs in check.