Federal Open Market Committee Meets Today and Tomorrow

  • March 14, 2017

The Federal Open Market Committee (FOMC) is scheduled to meet today and tomorrow for their second policy meeting of 2017.  Based on economic strength, many forecasters are predicting the first rate hike of the year will take place after this meeting.  The market is already pricing in a rate hike, but no official actions have taken place.

Earlier in the month, Fed Vice Chair Stanley Fischer avoided making direct comments on monetary policy or the decision to raise interest rates.  He stated, “committees and rule each have their advantages.  Committees embody a wider range of information and have a capacity for innovation.”  Fischer also insisted that the economy is “very complex” and may not fit forecasters’ models.

Other FOMC members have more willingly discussed the potential of a March rate hike.  Fed Governor Jerome Powell said the case for an interest rate increase in March has gained support and will be on the table.  Powell cited strong numbers from core inflation support a rate increase.

Fed Chair Janet Yellen also indicated that a rate hike is possible saying in a speech in Chicago, “At our meeting later this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate.” 

A benchmark interest rate hike impacts mortgage rates, savings accounts, the global economy and financial markets.  The FOMC makes decisions regarding interest rate policy based on economic conditions like inflation and the job market.  An official FOMC meeting announcement will be released on Wednesday at 2 PM EST and Fed Chair Yellen is scheduled for a press conference following the announcement at 2:30 PM EST. 


Sources: CNN Money, CNBC, Reuters

Bobbi Jones
Branch Manager
NMLS # 337709
Branch NMLS # 1813197

Bobbi Jones

PHONE: (302) 531-8585

CMG Image
© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).