Fed Says Rate Hike “Likely Appropriate” Sometime This Year
If you’re on the fence for a refinance or currently in escrow on a purchase.. I would advise locking in the next 2 weeks. The next fed meeting is scheduled for the end of October.
Whether the rate hike happens or not traders are going to anticipate it and rates will rise a bit the week or two before every meeting in anticipation. It’s happened before the last couple meetings, when there was a chance. The next meeting is late October. I’d advise locking by the first or 2nd week of October to be safe.
A rate hike “sometime later this year” would likely be appropriate, though the decision to abandon accommodative policy depends on economic data, Federal Reserve Chair Janet Yellen said Thursday.
“Most of my colleagues and I anticipate that it will likely be appropriate to raise the target range for the federal funds rate sometime this year,” Yellen said in prepared remarks at the University of Massachusetts.
Yellen contended that the central bank would need to tighten policy in a “timely fashion,” adding that delaying could lead to abrupt moves. She reiterated the Fed’s stance that the timing of the first hike matters less than making subsequent moves gradually.
“The more prudent strategy is to begin tightening in a timely fashion and at a gradual pace,” Yellen said.
Her speech came a week after the Fed’s policy-making committee voted to keep its short-term interest rate target near zero. Market watchers have scrutinized Yellen’s words as they look for clues as to whether the U.S. central bank will hike rates after either of this year’s remaining policy meetings in October and December. Full Article