Fed Governors Lorie Logan and Raphael Bostic have both been speaking publicly this morning about the danger of inflation turning around and biting the economy. Both were on board with the rate cut in September, but have since felt it necessary to squelch any further action until inflation data slithers away nicely. With the dissenting Michelle Bowman from the September vote, that makes three of the 12 FOMC voting members currently against another rate cut in two weeks. At this time, the majority would win the vote, which is why the Fed Fund target rate is currently factoring in am 85% probability of a 0.25% drop in 17 days when the FOMC convenes again.
Mortgage rates jumped about 1/4% this morning as a result of the silent threat of a prolonged period without more Fed intervention.
