Wednesday, May 10, 2006

Feds raise rates

For the 16th consecutive time, the Federal Reserve has raised rates. In their press release, the Federal Reserve states "The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 5 percent...The Committee sees growth as likely to moderate to a more sustainable pace, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices."

This move was widely expected. We will be closely watching mortgage interest rates in the coming weeks.

To read more: press release of the FRB

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