Fed Keeps Rates Unchanged In Anticipation Of Trump Policy

Dated: 02/03/2017

Views: 115

The Federal Reserve kept the key interest rate unchanged this week as it looks to future fiscal policy under the new administration—a decision in line with its intent to raise rates only gradually in 2017.

“In view of realized and expected labor market conditions and inflation, the [Federal Open Market] Committee decided to maintain the target range for the federal funds rate at 1/2 to 3/4 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation,” according to a statement by the Fed.

Approximately half of Americans recently surveyed by Bankrate are concerned about rising interest rates in the months to come. A higher key rate precedes higher mortgage rates; according to realtor.com®, the proportion of first-time homebuyers who plan to enter the housing market this spring has fallen 10 percent since the election due to higher mortgage rates.

The Fed expects to raise the key rate three times in 2017, but the current consensus among analysts is that the rate will not rise until June. The Fed raised the key rate once in 2016, one-quarter percentage point, in December.

Blog author image

Sheryll White

As a Full Time real estate agent for the past 23 years, Sheryll has helped hundreds of home owners in Colorado buy and sell their homes. Sheryll's easy going, no pressure style and her in depth knowl....

Want to Advertise on this Site?

Latest Blog Posts

Denver Metro Housing Market

As home buyers monitor increasing interest rates and rising prices in homes, housing inventory remains low in Denver Metro area. Here is some info about current Denver Metro Housing.&

Read More

Denver Summer Activities

Denver Colorado is the place to be this summer, Colorado offers everything from camping in the beautiful Rocky Mountains to strolling down Larimer Square  at the annual

Read More

Affordable Housing Downtown Denver Union Station 2018

We all know buying a home in Colorado for the past few years has been getting tougher and tougher, but don't think you are out of the game just yet!  We are experienced agents who

Read More

EXIT Realty Bonfils Blood Drive

EXIT Realty Corp. International has a long standing tradition of giving back to the community.  EXIT agents are no different and many of us have various causes or charities that we

Read More