Federal Reserve to Raise Interest Rates ... June, September, Someday?

Real Estate Broker/Owner with "The Congressional Team" RE/MAX Realty Services


 Federal Reserve to Raise Interest Rates ...

June, September, Someday?


Anticipation, frustration, and trepidation regarding the latest news that the September date for a possible rate hike may not happen.  The anticipation has been building for so long, it almost feels like a scheduled surgery that gets postponed too many times.

The latest statement from the Wall Street Journal:Fed officials have indicated they could move rates as early as September, though many investors expect the Fed to wait until December.”  

Since Fall 2014 (see sample articles below), numerous reports and articles state the Federal Reserve will have to raise interest rates. However, the big question for many folks is when?   Why does it matter?  It affects mortgage rates, bank rates, the stock market, the labor market, and so much more.   For those that remember..."Imagine paying over 18% interest on a 30-year fixed mortgage. It’s almost unthinkable. But that was the reality for home buyers in October 1981 – a year when the average rate was almost 17%." (link: Why Mortgage Rates Matter)



Good news! Interest rates will likely rise in 2015!

By Ylan Q. Mui, Washington Post

November 7, 2014

“The Federal Reserve wants to give you some good news: Interest rates could rise in 2015!

That was the message from two of the central bank’s top officials, Chair Janet Yellen and New York Fed President William Dudley, during remarks Friday at an economics conference in France. The event was focused on the future of central banking, and both officials tried to accentuate the positive.

The Fed has been scaling back its support for the economy over the past year, ending its roughly $3 trillion bond-buying program last month. Now it is seriously considering when to raise its target for interest rates, which have been at zero since the 2008 financial crisis. In her prepared speech, Yellen emphasized that the moves are a sign of a stronger recovery -- not, as some critics suggest, a reflection of a Fed out of firepower.”

Link: http:  November 7, 2014 Washington Post Article


Interest Rate Forecast 2015 - 2016

By Bill Conerly, Forbes

March 5, 2015

“Interest rates are headed up, but at a fairly mild pace. The Federal Reserve will start pushing short-term rates up this summer, probably in June.”

 Link:  March 5, 2015 Forbes


The Federal Reserve's New Monetary Policy Statement: Interest Rate Hike To Be Postponed?

By Bill Conerly, Forbes

March 18, 2015

“The Federal Reserve’s new monetary statement sounds uncertain: maybe they will raise interest rates soon, maybe not. That wishi-washiness reflects the challenges they face, with good economic arguments on both sides.”

Link:   March 18, 2015 Forbes


The Fed's Game Plan: Tightening At One-Third Throttle

By Bill Conerly, Forbes

June 17, 2015

 “When the Federal Reserve really wants to make big changes, they push short-term interest rates up or down by three percentage points in a year. For the upcoming round of tightening, Fed policymakers expect to raise rates by just over one percentage point per year.”

Link:  June 17, 2015 Forbes


Fed’s Yellen Aims to Move Rates Up Soon, but on a Slow Path

By  Jon Hilsenrath and Kate Davidson, The Wall Street Journal

July 15, 2015

“Federal Reserve Chairwoman Janet Yellen signaled that recent turbulence in Greece, China and elsewhere overseas isn’t threatening the U.S. economy enough to divert the central bank from plans to raise short-term interest rates later this year.

Fed officials have indicated they could move rates as early as September, though many investors expect the Fed to wait until December.”

Link:   July 15, 2015 The Wall Street Journal



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Posted by

Rick Reed, G.R.I., CDPE- Certified Distressed Property Expert 

Assoc. Broker/Owner "The Congressional Team" RE/MAX

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