Angela MacKinnon

CMI Mortgage #217909

  • Home
  • About
  • Blog
  • Resources
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage Glossary
    • Mortgage FAQ
  • Reviews
    • Leave a Review
    • My Reviews
  • Apply
  • Contact
You are here: Home / Federal Reserve / Fed Meeting Statement Points To Continuing Low Interest Rates

Fed Meeting Statement Points To Continuing Low Interest Rates

May 2, 2013 by Angela MacKinnon Leave a Comment

Fed Meeting Statement Points To Continuing Low Interest RatesWednesday’s Federal Open Market Committee (FOMC) statement indicates the Federal Reserve’s commitment to keeping long term interest rates and inflation under control.

The Fed will continue monitoring inflation, but does not expect inflation to rise more than 0.50 percent above its target rate of 2.00 percent over the next one to two years.

Ongoing monitoring of inflation and unemployment, as well as developing economic news, will guide the Fed in its future determinations concerning policy for its present iteration of quantitative easing (QE3).

Currently, the Fed purchases $85 billion of treasury securities and mortgage –backed securities each month with the goal of keeping long-term interest rates lower.

This includes mortgage rates, which can assist homebuyers with qualifying for mortgage loans in an environment of increasing home prices. Other goals include stabilizing the labor market, and limiting inflation.

Job Growth To Be Determining Factor On Fed Interest Rate Action

The statement also noted that the Fed will keep its interest rates between 0.00 and 0.25 percent, until the Fed sees the national unemployment rate fall below 6.50 percent.

While noting that the housing sector is improving, the Fed stated concerns about ongoing high unemployment rates. Jobs are a key aspect to supporting the economy, as 70 percent of the U.S. economy involves the purchase of goods and services by consumers. 

The Fed also repeated its position to evaluate the efficacy of its quantitative easing program; if the agency finds that the program is not achieving their desired objectives, changes to the program can be expected.

While a clear majority of FOMC members voted to keep current policies intact, one member voted against this course of action citing the potential for continued quantitative easing at current levels to fuel inflation.

The bottom line for today’s statement is that the Fed continues its “wait and see” position concerning quantitative easing and low federal interest rates.The committee also re-asserted its intention to gradually reduce quantitative easing when it’s time for a change.

In addition, the Fed is committed to monitoring a wide range of economic data with an eye toward adjusting its policies in the best interest of economic recovery. 

Filed Under: Federal Reserve Tagged With: FOMC,Interest Rates,Jobs

Leave a Reply

Your email address will not be published. Required fields are marked *

Photo

Contact Angela


MORTGAGE BROKER
NMLS #210518
Office: 405-340-7044
Mobile: 405-570-7276


Apply Now →

Connect with Angela

Archives

Categories

March 2023
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  
« Feb    

Links

  • Patriot Act Notice
  • Privacy Statement
  • Terms of Use

Office Location

Angela MacKinnon
CMI Mortgage #217909
2932 NW 122nd Suite 18
Oklahoma City, OK 73120
Equal Housing Lender

Copyright © 2023 · Powered by MySMARTblog