Skip to main content

Fed Holds Steady on Rates

Phil Hall
Jun 19, 2019
Photo credit: Getty Images/Waldemarus

The Federal Reserve has opted to keep its foot on the proverbial brake and maintain the current federal funds rate at 2.25 percent to 2.5 percent.
In a statement issued after a two-day meeting by the central bank’s policymaking Federal Open Market Committee (FOMC), the decision was based on weighing economic positives–including solid gains in employment, increased household spending and inflation near the Fed’s two percent objective–along with concerns over undefined “uncertainties.”
“In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric two percent inflation objective,” the Fed said in a statement. “This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.”
"Markets are going to have a difficult time digesting these mixed messages, as it indicates that the Fed recognizes the slowdown, but is not yet committed to cut rates this year," said Mortgage Bankers Association (MBA) Chief Economist Mike Fratantoni. "MBA is forecasting two rate cuts later this year, believing that the slowdown will continue and will eventually force the Fed to act in line with market expectations. Longer-term rates are likely already pricing in several rate cuts. Thus, mortgage rates may be more volatile in the months ahead, which could both provide refinance opportunities for some homeowners, while causing potential homebuyers to pause amidst the uncertainty.”
The FOMC vote had a single dissenter with St. Louis Fed President James Bullard, who sought to lower the target range for the federal funds rate by 25 basis points. Earlier this month, Bullard raised the possibility that the nation’s central bank will drop a rate cut later this year if the economy sails into choppy waters.

Jun 19, 2019
Angel Oak Layoffs Add To Growing List Of Non-QM Cuts

About 20% of its staff, or 75 people, were affected.

Industry News
Sep 28, 2022
Redwood Trust Names New Chief Investment Officer

Also announces planned CoreVest leadership transition to be completed on 3rd anniversary of acquisition

Industry News
Sep 27, 2022
Fannie Mae Pilot Program Seeks To Help Improve Renters' Credit

Renters, including historically underserved groups, will benefit from paying on time each month.

Industry News
Sep 27, 2022
Suffolk County Data Breach Puts Contracts On Back Burner

Cyberattack beginning Sept. 8 prevents title services from closing loans.

Sep 27, 2022
Nations Lending Opens Another Branch In Arizona

New Scottsdale branch welcomes Arizona native Christine McConnell as lead personal mortgage advisor.

Industry News
Sep 26, 2022
Nominations Open For Industry Titans Award

NMP Magazine to honor people who represent industry with professionalism.

Industry News
Sep 23, 2022