It’s Fed Day. The markets are flat ahead of the read statement at about 12:15 our time. Their economic projections (AKA: “dot plot”) will be publicized, as will be the Fed Funds Rate going forward. The latter is anticipated to remain at 1.25%. Many economists are expecting the Fed to announce the implementation of the plan laid out earlier this year to sell off the better part of $4.5 trillion in assets (AKA: unwinding QE). While the markets are anticipating this flood of bonds to hit the market, it’s entirely possible that the ramifications will have hurricane-like destructive effects on interest rates, just as a real hurricane destroys the property of people, even though they know it’s coming.
Puerto Rico’s Governor told residents that their lives are in danger if they don’t evacuate. I’m telling you that if your mortgage interest rate isn’t locked in and fixed, your financial life is in jeopardy.