May
19
Economy Watch: FOMC Minutes Point to Rate Hike in June
ByIs the Federal Reserve itchy to raise interest rates again?
Is the Federal Reserve itchy to raise interest rates again? Could be, based on the minutes (released Wednesday) of the latest Federal Open Market Committee meeting, which was on April 26-27. One nugget buried in the long statement by the FOMC: “Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen and inflation making progress toward the Committee’s 2 percent objective, then it likely would be appropriate for the committee to increase the target range for the federal funds rate in June.”
If the rate went up from the current federal funds rate of 1/4 to 1/2 percent, that movement would of course affect all kinds of borrowing besides Fed-to-bank, including real estate deals. A slightly higher interest rate would raise the cost of loans, but money would still be pretty cheap for most real estate-oriented borrowers…
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