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FOMC News Signals Multiple Rate Hikes Through 2024
The Federal Reserve is meeting today for the Federal Open Market Committee’s September policy setting session. Interest rates were not raised during this meeting, but the committee is discussing the process of tapering the Fed’s bond buying program. Tapering could begin this year, but rate increases are projected to happen gradually over the next two years.
30 Year Fixed Mortgage Rate
|Change From Yesterday||0.077%|
|Change From One Week Ago||0.070%|
|Change From One Year Ago||-0.080%|
15 Year Fixed Mortgage Rate
|Change From Yesterday||0.044%|
|Change From One Week Ago||0.027%|
|Change From One Year Ago||-0.377%|
Today’s Financial Headlines
The Federal Reserve is optimistic about the nations’s economic recovery from COVID. However, they still acknowledge that this recovery will take several years. Interest rates were not raised at the September FOMC meeting, but talks are in progress to determine the timing for tapering the bond buying program. In early November and mid-December, the central bank will have two more meetings. Discussions are in progress to slowly taper the bond buying over the next two years.
The Federal Reserve publishes a full statement of each Federal Open Market Committee session. These reviews are published the day after the meetings are concluded. While many pundits will speculate on the meeting and its implications, the best way to stay informed is to read the original publication issued by the Federal Reserve. Not all economists agree with the Fed’s projections, so it is important to look at other sources of economic analysis as well.
Jerome Powell claims in his live interview that there “are upside risks” to inflation. Federal Reserve Chair, Jerome Powell, says he will respond swiftly if inflation remains stagnant and higher than expected. Due to the uncertainty of the world around the pandemic, there is still economic risk and uncertainty. Mr. Powell also discussed tapering bond buying. Provided that the virus calms down and the economy remains on track, the tapering could begin by the end of the year.