What the latest Fed interest rate rise means for housing
By Norman Carr Mar 18, 2017
More recently, however, the market had no doubt about the upcoming rate hike, and even say the increases is already priced into the market. "Now willing to go beyond data dependency and seeking a more balanced policy response".
Trump's treasury secretary, Steven Mnuchin, has eased the administration's tone on the Fed since taking office.
It's been a long time coming.
Rates, which determine the cost for banks to lend to each other, remain at near-historic lows, between 0.75 percent and 1 percent. Federal Reserve Board Chair Janet Yellen said in a press conference March 15th, 2017.
Raising the Fed Funds target rate to 0.75-1.00 per cent marks the second rate hike in just over three months.
Bradley A. Wasserman, founder of Wasserman Wealth Management in Farmington Hills, said he'd expect at least two or three additional 0.25% rate hikes in the rest of the year. Should the economy gain more momentum, the Fed could change its tune. But that's still below the rate of inflation, said Gregory Daco, Chief U.S. economist at Oxford Economics.
"We've been thinking about getting back into the market, so when I see interest rates going up, it concerns me because I think, 'Oh no".
Falling credit spreads, the S&P 500's bull run and the fact the dollar has failed to maintain its post-election ascent this year all constitute stimulus - defying post-election fears that a tightening of financial conditions may offset president Donald Trump's bid to boost growth.
A plan that will worsen health care
Native American tribes are wondering what will happen to their health care if proposed changes to Obamacare by Republicans go through.
The Fed's move Wednesday was widely expected by economists, given recent signs of increased hiring and rising inflation, so attention shifted to whether the central bank would feel pressure to increase rates more than anticipated this year.
He added: "In addition, the ability to stomach higher interest rates reflect a stronger USA economy that is supported by spending and job creation, so export-dependent Asia should benefit from U.S. growth".
By April, three key governor positions at the Fed will be open, Yellen's term ends in January, and the Fed's No. 2, Stanley Fischer's, ends in June 2018.
Although reporters repeatedly pressed Yellen to discuss some of these policies in more detail, she said there's too much uncertainty and it's too early to predict their overall economic impact.
Wednesday's projections show Fed officials see the economy growing 2.1% in 2017, the same pace as in December.
"As with the general interest rate environment, they've been rock bottom for years", he said.
Ms. Yellen and the Fed board conclude that the USA economy, with low unemployment, near-target inflation and slightly rising wages and labor participation, is healthy enough to return toward a normal interest situation.
You may also like...
-
Google introduces new parental control software for Android devices
-
No. 1 Villanova starts slow, finishes Mount St. Mary's in first round
-
Maybe Marvel's Iron Fist Needs More Time to Develop?
-
EPA Reopens US Rules Setting Vehicle Efficiency Standards For 2025
-
Advice for betting seeds in your NCAA tournament bracket
-
Industrial Complex is Back: Trump Unveils His Budget Plan
-
-
Nuclear war threat grows as U.S. deploys THAAD to South Korea - Pyongyang
-
Buzzwords in three key elections — Immigration and EU
-
Advertisement
-
Leadership
House Committee Votes to Advance Republican Alternative Health Care Law
Mar 18, 2017Michigan's Red-Hot 2nd Half Shooting Leads To Win
Mar 18, 2017NCAA Tournament: Most likely Cinderellas at each seed
Mar 17, 2017Fed raises interest rates as expected
Mar 17, 2017Netherlands to Vote in Parliamentary Elections Today
Mar 16, 2017 -
-
The Latest
-
| Apr 26, 2017
-
| Apr 26, 2017
- | Apr 25, 2017
- | Apr 25, 2017
-
| Apr 22, 2017
"Three Alphas" Held Meeting Before Bulls' Game 2 Win in Boston
- | Apr 21, 2017
-
-
-
| April 04, 2017
House sends bill to Trump blocking online privacy regulation
-
| April 03, 2017
Sindhu gets it right against Carolina, wins maiden India Open
-
| April 04, 2017
-
Top Tags
Copyright © 2017 voiceherald.com - Voice Herald | All Rights Reserved