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The Federal Reserve Board left interest rates unchanged today (May 4) and added that it will be in no hurry to raise rates anytime soon because “long-term inflation expectations appear to have remained well contained.”
Although the Fed’s inaction was widely anticipated, it provides more good news for the RV market, which saw wholesale deliveries grow by a little more than 29% in March and by almost 19% in the first quarter.
Because the Fed took no action today, it can be assumed that lenders will keep their prime rates, to which RV-dealer and consumer-loan rates are pegged, at 4%, the lowest level for the prime since 1958.
The prime has been at 4% since June 27, 2003.
The U.S. economy grew at a robust 4.2% rate during the first quarter and the Fed stated today that it believes there’s a 50-50 chance that the economy will continue growing at a sustainable rate.
“Output is continuing to expand at a solid rate and hiring appears to have picked up,” the Fed said in statement today. “Although incoming inflation data have moved somewhat higher, long-term expectations appear to have remained well contained.”
The next regular Fed meeting is scheduled for June 29-30.