Fed Holds Fed Funds Rate Steady at 5.25%
Loading ...Well the news is out. Today the lates Fed meeting adjourned and the Fed Funds Rate remained unchanged at 5.25% At this time the door was left open for further rate increases although the article on money.com noted that several economists have said that they believe the housing market to be of greater concern that high oil prices and inflation. You see to combat inflation, the Fed raises the Fed Funds rate, which in turn tend to raise mortgage rates. In this case, raising the Fed Funds rate to curb any inflation that we have, will further slow the housing market because of the response that mortgage rates will have which will be to edge up higher than what they are already at.
Seems to put the Fed in an interesting position doesn't it?
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