The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 4-3/4 percent.
…possible increases in resource utilization, in combination with the elevated prices of energy and other commodities, have the potential to add to inflation pressures. Press Release
There were no real surprises today [NYT] so the Greenspan era lives on.
Fed economists have argued that a slowing housing market is likely to dampen overall economic growth. Housing, however, is not sinking yet. Sales of existing homes rose in February, housing starts remain strong and by some measures home prices are still rising.
While it is true that housing is strong in many markets, there are many markets not rising any more. Because the connection between housing and the economy is connected by the consumer, the economy may unravel faster than the Fed can react to.
It looks like at least one more increase is in store for us, perhaps more.
Tags: Alan Greenspan
I am first an artist and I am also a mortgage broker licensed in both the State of Oregon and Washington.
I began selling real estate mortgage finance in 1989, as a way to be our family of artists’s patron (art obviously is not a valuable commodity in the USA) and also I felt all mammals want and need a “nest egg.”
We are working around the clock to help people “get off the grid” and thus, save their real estate.
But we recommend the people who have mortgages and credit cards write every bank CEO and/or creditor (MBNA = Bank of America for example), and let them know that we refuse to pay for the bankrupt Country which the neocons are responsible for.
Every person who sold America as though it was their own personal commodity must forfeit their money to pay the national and war debts.
Furthermore, the Fed must pay for the counterfeit money it has printed as the greatest fraud committed to the USA and the planet.
We need interest rates to be lowered so we can get off the grid. Those who do not use the money to become energy self-reliant can pay taxes or higher interest as those who have no control over their unbridled consumerism.