Fed Rate Hike Likely Today-12/19/2018

The Federal Reserve is expected to announce that they will raise the rate at which they lend to banks from 2.25% to 2.5%.  There is a lot of politically charged talk about the move, but the Fed has been consistent with making their decisions based on market data.  The unemployment rate is at a low 3.7%, a key marker that our economy is healthy.  Not everyone is happy about the decision to raise rates:

• ·         President Trump says the move is based on meaningless numbers and that the Fed should “feel the market”.   In Great Britain there would be a pause and they’d say, “Right then, in Zimbabwe today…”.

·         Bruce Bittles of Baird says, "First, I'm concerned that if the Fed does not raise rates, they look to be bending top political will," and added. "And no. 2, they'd be admitting that economy doesn't look too great."

Not everyone is upset with the Fed’s moves – the stock market jumped up 50 points today on the anticipated announcement.

The Easterbrook Team for Your Home Loan Needs!