Rates started the day up, but have since dropped. Here's why.
Daniel Tarullo
Below is the full FOMC statement from today’s Fed meeting, and there are three dissenters on today’s new language stating a low rate target “at least through mid-2013”. These dissents are a big change because all FOMC decisions received unanimous votes since the Thomas Hoenig rotated off the FOMC in January, and he was the
Below is the full FOMC statement from today’s Fed meeting, and there are three dissenters on today’s new language stating a low rate target “at least through mid-2013”. These dissents are a big change because all FOMC decisions received unanimous votes since the Thomas Hoenig rotated off the FOMC in January, and he was the
Today’s Fed statement acknowledges economic recovery is on “firmer footing,” and while the Fed acknowledges inflationary concerns, it’s choosing to ignore inflation pressure for now and keeping overnight bank-to-bank target Fed Funds Rates at 0-.25%, and keeping the overnight Fed-to-bank Discount Rates at .75%. They also said they’d keep going with their second round of
Below is the statement from the first Fed rate policy of 2011, which shows their view that the economic recovery and jobs situation is still unstable. They left overnight bank to bank lending rates the same at a 0-.25% target, and also said they’d continue their $600b quantitative easing program designed to lower business rates
Following the last Fed policy statement of 2010 (below), rates continue higher—30yr fixed 5% today vs. 4% on October 8—as mortgage and Treasury bond prices continue to trade lower on the 4 rate themes of recent weeks. The Fed noted that “the economic recovery is continuing” and that they’d continue the $600b+ Treasury buying (QE2)
Following the last Fed policy statement of 2010 (below), rates continue higher—30yr fixed 5% today vs. 4% on October 8—as mortgage and Treasury bond prices continue to trade lower on the 4 rate themes of recent weeks. The Fed noted that “the economic recovery is continuing” and that they’d continue the $600b+ Treasury buying (QE2)
The Fed said it will buy $600b in long-term Treasuries from now until June 30, 2011 as part of a second round of quantitative easing, and made no mention of buying more mortgage bonds. Buying Treasuries helps overall rates in the economy but has no direct impact on mortgage rates like buying mortgage bonds does.
Following it’s sixth meeting of 2010, the Federal Open Market Committee voted to keep the overnight bank-to-bank Fed Funds rate at a target of 0-.25%, and the overnight Fed-to-bank Discount Rate at .75%. The statement (below) talks about ongoing threats to economic recovery, and mortgage bonds have rallied strongly (currently up 72 basis points) since
Following it’s sixth meeting of 2010, the Federal Open Market Committee voted to keep the overnight bank-to-bank Fed Funds rate at a target of 0-.25%, and the overnight Fed-to-bank Discount Rate at .75%. The statement (below) talks about ongoing threats to economic recovery, and mortgage bonds have rallied strongly (currently up 72 basis points) since
Mortgage bonds closed up 19 basis points today following a Fed meeting where they kept their low rate stance. Mortgage lender rate sheets didn’t decrease commensurately as lenders held the line ahead of a 10yr Treasury note auction Wednesday and a 30yr T-Bond auction Thursday. Lenders do this because longer-dated Treasury auctions compete with mortgage
The Federal Open Market Committee voted today to keep the overnight bank-to-bank Fed Funds Rate steady at 0-0.25% and the overnight Fed-to-bank discount rate at .75%, citing subdued inflation that’s likely to continue for “some time.” For the fourth straight meeting in 2010, Kansas City Fed President Thomas Hoenig dissented on the belief that modest
The FOMC just announced the results from their third meeting of 2010, and all members except for Thomas Hoenig voted to leave overnight bank-to-bank Fed Funds Rates unchanged at the target 0-.25% range—the rationale for this is in their unchanged language on inflation: “inflation is likely to be subdued for some time.” As for long-term
The Fed just made it’s announcement following today’s FOMC meeting. All FOMC members except for Thomas Hoenig voted to leave the overnight bank-to-bank Fed Funds Rate the same at 0.25%. There was no reference to the Fed-to-bank Discount Rate, which is currently at 0.75% following a surprise 0.25% hike last month. As usual, the press
The Fed held the overnight bank-to-bank Fed Funds Rate at a range of 0-0.25% and more definitively announced that they expect to wind down their mortgage bond purchases by March 31. They still said they will make a final decision on MBS buys according to market conditions, but they did say they’d wind down purchases
Below are our excerpts of key elements from Fed minutes from their last FOMC meeting on December 15-16. The excerpts cover the following: Fed’s view on whether economic recovery will last, support for tame inflation even with volatile energy prices, bank standards to remain tight because of commercial real estate strains, and jobless rate likely
Load More