Fed raises interest rates and expects more this year

Fed raises interest rates and expects more this year

Eli Math, LLC Eli Math, LLC

Eli Math, LLC

Real Estate Agent at Landmark IV Realty

发布日期: 2018年6月15日
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"As widely anticipated, the Federal Reserve has raised its short-term federal fund rate – what banks charge each other – by 0.25 points to a range of 1.75 to 2 percent. Fed officials voted unanimously on Wednesday to increase this key rate, which influences the flow and supply of money in the U.S. economy. The statement by Fed officials explaining the vote also hinted at a slightly faster pace for future rate increases. They removed previous language that the rate "is likely to remain, for some time, below levels that are expected to prevail in the longer run." Federal Reserve policymakers expect to raise their benchmark interest rate four times this year, up from a March projection of three, reflecting their forecast that the unemployment rate will fall to a 50-year low later this year and inflation will rise more quickly. The Fed also decided Wednesday to lift short-term rates for the second time this year, to between 1.75 and 2 percent. That suggests they will hike rates twice more this year to between 2.25 and 2.5 percent. Fed policymakers also expect three hikes next year, the same number they forecast in March, and one in 2020. Fed officials expect unemployment to reach 3.6 percent by the end of this year, the lowest since 1969, down from an earlier forecast of 3.8 percent. Inflation will reach 2.1 percent late this year, slightly above the Fed's target, up from 1.9 percent previously forecast." With interest rates on the rise, now is a great time to buy a house. Let me and my team help you decide if this is the right thing for you to do. Call us for a FREE CONSULTATION at 954-292-9946!!

Cyndy Celmer Tomassetti

Licensed Broker Associate at Engel & V?lkers

6 年

Interesting. Thanks for sharing.

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