It Could Be a Pivotal Fed Day Today
Filed under: Market Comentary
It’s Fed day – I mention it every time the Fed meets. More often than not, it’s pretty mundane because the market is has already anticipated what is going to happen, so the news isn’t surprising.
A Lot Hanging on the Fed Announcement
However, there is a lot hanging on what the Fed does today. It’s expected that the Fed will hold rates at zero to a quarter. But it’s going to be really important to see how they talk about the inflation risk happening. I talked about this topic last week, and it’s worth mentioning again because this week it’s going to be brutally important to see how the Fed frames the risk around the inflation that’s going on right now.
If they make it sound like they are going to let inflation run and might let rates go up, we can expect to see bad trends for interest rates today. Alternatively, if things go the other way and the Fed sounds a little more accommodating, we might see a bit of improvement.
Pivotal Announcement and the News Channels are Watching
It’s one of those days that is a bit pivotal. I even saw it as a headline on CNBC – they are talking about how NASDAQ is holding their breath to see what the Fed is going to say.
That announcement comes out later today. I’ll be watching to keep you updated if anything unusual happens. I’m always working to keep you up to date on the things that are changing in the industry.
As always, I’m happy to answer questions and discuss your mortgage needs. Reach out if you need information for buying or refinancing your home.