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President Trump has committed to reduce government spending by 3.6 trillion dollars over the next ten years.  That’s a pretty bold commitment considering the President’s term is only for four years.  As the June Fed meeting approaches, we anticipate the overnight rate to jump up another 0.25%.  While that does not directly impact a 30 year mortgage loan rate, the Fed does have a large trump card (no relation to the CEO of the U.S.) that it can play to regulate longer-term rates.  By beginning to sell some of their two-plus trillion dollars in mortgages, the Fed can drive prices down and rates higher on 15 and 30 year loans, keeping the yield curve looking normal and healthy.