According to an article by Florida Realtors, Federal Reserve Chair Janet Yellen discussed the possibility of an interest rate hike on Friday. Due to solid job growth and a strong economy overall, the increase is possible. However, she gave no timetable for when the Fed may decide to increase interest rates. The Fed does have meetings coming up Sept 20-21, and more in October, November and December. The increase may, or may not, happen at any of these meetings. She also discussed how inflation is currently below the Fed’s 2 percent goal. However, that is due to only temporary causes.
“In light of the continued solid performance of the labor market and our outlook for economic activity and inflation,” Yellen said, “I believe the case for an increase (in the Fed’s benchmark borrowing rate) has strengthened in recent months.”
“As ever,” she said, “the economic outlook is uncertain, and so monetary policy is not on a preset course.”
Since Yellen set no time table, many economists assume the interest rate hike won’t happen in September. The Fed will also look at August’s job report that comes out this Friday. With the election coming as well, there is a good chance aspects of the economy will fluctuate.
“We think most officials will want to see more concrete evidence of a rebound in GDP growth and a rise in inflation towards the 2 percent target, with a December move still appearing the most likely outcome,” said Andrew Hunter, an economist with Capital Economics.
Activists hope that rates will stay low as the economy strengthens.
A low interest rate means home buyers have more buying power. If you are looking to buy a home soon, you should do so soon before rates rise. RE/MAX Paradise has so many beautiful homes in Miami, you will not want to wait another moment before contacting one of our agents.