Fed Hikes Interest Rates As Predicted
Summary
Adam DeSanctis director of public affairs, and external relations for the Mortgage Bankers Association, said the committee clearly signaled that additional hikes are coming, with the median FOMC member expecting to raise rates at each of the remaining six meetings in 2022. Lending rates, including mortgages, are also expected to increase because banks and credit unions have to maintain their net interest margin, according to industry analysts. In such a case, all rates, including mortgages, will start going down again,” said Dan Geller, a behavioral economist for financial services at Analyticom. Powell also confirmed that the committee is finalizing a plan to begin reducing its $9 trillion asset portfolio, with action occurring as early as May, when members meet again. Powell acknowledged that the ongoing war in Ukraine and the possibility of related energy and supply line issues could throw the committee’s plans into flux, but added that it will deal with whatever arises, “for better or worse.” “We don’t have a perfect crystal ball about the future, but we’re prepared to use our tools to restore price stability,” he said.