Real Estate News

Upcoming Federal Reserve meeting sparks speculation

Published: 14 Mar 2017

The Federal Reserve is set to meet soon, prompting many to anticipate what the results might be. Since there have been signs that a hike to interest rates is on the way, some believe that this is poised to come true. Buyers might have to adjust to meet a sizable jump in trends. This alone could have a significant impact, and there's further belief that more rate increases might come in this year alone.

CNBC said the move comes not just after suggestions from the Fed's chair, Janet Yellen, but also estimates from traders and a report showing high jobs strength. All of this could combine to mean a new market for the year and beyond, as well as more factors for buyers to consider. However, one of the Fed's main goals appears to be combating inflation.

The Los Angeles Times said that the Reserve previously increased rates last December. In addition, Yellen said that the decision to raise rates would likely come, barring a major disruption.

In short, we currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect," she said. Yellen later added that adjusting rates "would likely be appropriate" if there is no change in the progression of employment and inflation.

The December rate changes pushed them between .5 and .75 percent, according to the Wall Street Journal. That source also said that the combined total of three expected 2017 Fed increases could be .75 percent over the course of the entire year.

These are the first hikes to come under the Chair tenure of Yellen, as opposed to her predecessors Ben Bernanke and Alan Greenspan: they also represent the first increases since the years of the recession, the Journal reported.