Fed wraps up its meeting tomorrow—what will rates do?
The Federal Reserve will wrap up its two day meeting tomorrow. All speculation is moving towards a non rate hike in the Fed Funds Rate. I read a recent interesting article written by Paul R. La Monica on yahoo finance:
http://finance.yahoo.com/news/The-Buzz-Does-the-entire-Fed-hmoney-2703420407.html?x=0
To sum the article up: Everybody knows that the Fed is going to once again keep interest rates near zero, which is where they have been since December 2008, and reiterate that rates will remain “exceptionally low … for an extended period.”
“The Fed statement is going to be more or less a carbon copy of the March statement. They don’t want the market to misinterpret anything,” said John Derrick, director of research for U.S. Global Investors, a San Antonio-based money manager. “I don’t think they want to make a move yet since they still question how sustainable the recovery is.” Once the Fed does get moving they probably will move rapidly,” Karl said. “So they’re not likely to start raising rates until the first quarter of 2011. We need a year of strong employment growth before the Fed should consider hiking interest rates.”
It will remain to be seen what happens. Stay tuned, I will report on my findings later on in the week. I would suggest if your thinking about refinancing to “not” wait on the fence for lower rates—time is ticking— Also, the First Time Home Buyer Credit and Move Up Credit to buy a home ends this Friday, April 30. One must have an accepted offer in by this time and close on or before June 30, 2010 to qualify for such a credit. Please feel free to call me with any questions at 262-696-5041 or email me at krissteinbach@inlanta.com
