Federal Reserve 'between a rock and a hard place' as interest rate decision looms
Federal Reserve officials will convene this week for one of the central bank's most uncertain policy meetings in years.
Forced to balance the consequences of a banking crisis and inflation that remains well above target, the Fed is expected to raise interest rates by another 0.25% when it releases its latest policy decision at 1:00 p.m. cst Wednesday afternoon. This move would bring the Fed's benchmark interest rate range to 4.75%-5%, the highest since 2006. Fed Chair Jerome Powell will hold a press conference at 2:30 p.m. cst to explain the Fed's decision.
The 10 year treasury is the best indicator that somewhat tracks mortgage rates.
12:18 pm cst 10 year treasury down 4 basis points to 3.56%
1:07 PM : The FOMC has raised the Fed Funds rate by 25 basis points to a target range of 4.75% to 5%, which is the highest level since 2007. Fed dot plot projection is unchanged from December's at 5.1%. This implies one more 25 basis point hike this year.
1:15 pm cst 10 year treasury down 7 basis points to 3.53%. Mortgage Bonds are improving.
3:19 pm CST 10 year is now down 15 basis points to 3.451%. It looks like the bond market likes what the Fed is doing.
Let me know if you have any questions or if I can help in any way.
Thanks!
John Marbury
Mortgage Banker
Residential Lending
Cell 205-266-5669
2100 Southbridge Parkway, Suite 650
Birmingham AL 35209
NMLS# 740833
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