Stocks and Bonds are up this morning as the Fed starts their two-day Open Market Committee meeting. The Fed’s goal is balance. They seek to regulate the velocity of economic growth in our country: not too fast and not too slow. The statement from the last FOMC meeting reiterated their objective of a 2.0% growth rate.
The Producer Price Index released today dropped from 0.4% last month to 0.3% this month, while the Core PPI (excluding food and energy) fell from 0.5% to 0.0%. Tomorrow’s Consumer Pricing numbers will tell help tell the whole story of the rising (or not) cost of goods. A 0.25% bump in short-term rates tomorrow is a given. The last few times that the Fed has raised rates, our mortgage rates actually improved. So stay tuned!