fed funds rate

The Week In Review (February 5, 2007) : What To Watch For

February 5, 2007

Last week was not for the weak-hearted as mortgage rates bounced around like a fumbled Super Bowl football.  In a widely-expected move, the Federal Reserve held the Fed Funds Rate at 5.25% for the fifth consecutive meeting, stating that growth is “moderate” and that inflation pressures may be subsiding. Consumer spending represents two-thirds of the […]

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The Fed Says: Housing Shows Signs of Stabilization

February 1, 2007

The FOMC left the Fed Funds Rate at 5.250% yesterday, signaling controlled growth in the months ahead.  Most notable was the press release’s inclusion of “tentative signs of stabilization” with respect to the housing market and the removal of references to high energy prices. Because the FFR did not change, the FFR-derived Prime Rate also […]

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It’s Not What They Do, It’s What They Say

January 31, 2007

It’s all eyes on the Fed today as the market sits patiently, waiting for the 2:15 P.M. EST press release.  Despite strong 2006 Q4 growth figures and a five percent spike in oil prices yesterday, there is an eerie calm while markets wait for the FOMC’s press release. In its December 2006 press release, the […]

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The Week In Review (January 15, 2007) : What To Watch For

January 15, 2007

In a week practically devoid of economic news, mortgage rates trended higher last week amid falling oil prices and surprise strength in Holiday Season spending. Investors are jittery about the U.S. economy.  Since it stopped raising the Fed Funds Rate this past summer, the Federal Reserve has repeatedly told markets that it is expecting an […]

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It Was “Happy Holidays” for Retailers in December

January 12, 2007

For all of the talk about the slowdown in consumer spending, it appears that this Holiday Season was a winner.  This morning’s Retail Sales report doubled economists’ expectations by showing 1.0% growth. This is just one more inflationary pressure in the economy and makes it less likely that the Fed will lower the Fed Funds […]

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Once Bitten, Twice Shy: ADP Says Jobs Were Lost in December

January 10, 2007

After last week’s data showed ongoing strength in the U.S. economy, there is a growing sentiment that the Fed will choose to raise the Fed Funds Rate before it begins lowering it. FFR currently stands at 5.250% and here is what markets are predicting over the near-term: After January 30-31 Meeting: Decrease to 4.750: 0% […]

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