{"id":6769,"date":"2009-01-30T17:02:48","date_gmt":"2009-01-31T00:02:48","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=6769"},"modified":"2009-01-30T17:02:48","modified_gmt":"2009-01-31T00:02:48","slug":"the-fed-translated-4","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6769\/the-fed-translated-4\/","title":{"rendered":"The Fed Translated….."},"content":{"rendered":"

Tom here\u2026.\u00a0 Sorry for the delay, but better late than never\u2026.. (my comments are in bold)<\/strong><\/p>\n

The Federal Open Market Committee decided today to keep its target range for the federal funds rate at 0 to 1\/4 percent. <\/em>Nothing new there and no surprises.\u00a0 Can\u2019t go lower than zero and certainly can\u2019t raise them right now. <\/strong>The Committee continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.<\/em> Here again, no big surprises.\u00a0 I think the surprise is going to be the amount that rates go up once the economy does recover and inflation becomes an issue.\u00a0\u00a0 I\u2019ve been talking to a large number of people who want to use a home equity line (at prime or prime minus .5%) to pay off their mortgage.\u00a0\u00a0 They would lower their rate down to around 3%, but my recommendation would be to do that only if they can plan on paying the balance off within 1 to 3 years.\u00a0\u00a0 My feeling is that any longer term than that will make it too expensive because of the way rates are going to jump up.\u00a0\u00a0 For more thoughts on that, see what I wrote a couple of weeks ago about the \u201cW\u201d recovery.<\/a><\/strong><\/p>\n

Information received since the Committee met in December suggests that the economy has weakened further. <\/em>No surprise there. <\/strong>Industrial production, housing starts, and employment have continued to decline steeply, as consumers and businesses have cut back spending. Furthermore, global demand appears to be slowing significantly. Conditions in some financial markets have improved, <\/em>Really?\u00a0 Which ones? <\/strong>in part reflecting government efforts to provide liquidity and strengthen financial institutions; <\/em>If you look at Bank of America and Citi, you can\u2019t tell that the financial institutions are stronger, <\/strong>nevertheless, credit conditions for households and firms remain extremely tight. The Committee anticipates that a gradual recovery in economic activity will begin later this year, but the downside risks to that outlook are significant.<\/em> Translated \u2013 we hope things get better later this year, but we really don\u2019t know, so don\u2019t blame us if it takes longer.<\/strong><\/p>\n

In light Read more<\/a><\/em><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Tom here\u2026.\u00a0 Sorry for the delay, but better late than never\u2026.. (my comments are in bold) The Federal Open Market Committee decided today to keep its target range for the federal funds rate at 0 to 1\/4 percent. Nothing new there and no surprises.\u00a0 Can\u2019t go lower than zero and certainly can\u2019t raise them right […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2,26],"tags":[288,184],"class_list":{"0":"post-6769","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-general","7":"category-lending","8":"tag-the-fed-translated","9":"tag-the-federal-reserve","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":8184,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8184\/the-fed-translated-6\/","url_meta":{"origin":6769,"position":0},"title":"The Fed Translated….","author":"Tom Vanderwell","date":"April 30, 2009","format":false,"excerpt":"Yep, it's that time again.\u00a0\u00a0\u00a0 The Fed met yesterday and today and came out with their announcement this afternoon at 2:15 pm.\u00a0\u00a0 I promise that this one won't be as long as the last Fed Translated was.As usual, my comments are in bold and italics.....April 29, 2009For Immediate Release:Information received\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3774,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3774\/the-fed-translated\/","url_meta":{"origin":6769,"position":1},"title":"The Fed Translated….","author":"Tom Vanderwell","date":"August 5, 2008","format":false,"excerpt":"As you have probably heard by now, the Fed held rates the same today.\u00a0\u00a0 Here\u2019s their statement (in italics) and my translation (in bold).\u00a0 I hope this helps you understand what is going on. The Federal Open Market Committee decided today to keep its target for the federal funds rate\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6152,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6152\/the-fed-translated-3\/","url_meta":{"origin":6769,"position":2},"title":"The Fed Translated…..","author":"Tom Vanderwell","date":"December 16, 2008","format":false,"excerpt":"Release Date: December 16, 2008 The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1\/4 percent. What\u2019s up with the \u201crange\u201d of rates?\u00a0\u00a0 Well, they\u2019d look pretty foolish if they said they wanted the rate to be at .25%\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5326,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5326\/the-fed-translated-2\/","url_meta":{"origin":6769,"position":3},"title":"The Fed Translated….","author":"Tom Vanderwell","date":"October 29, 2008","format":false,"excerpt":"The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent.\u00a0\u00a0 That's the lowest that it's been since June of 2004.\u00a0 If you recall, former Fed Chairman Greenspan is being blamed, in part, for causing the credit crisis by\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7526,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7526\/the-fed-translated-5\/","url_meta":{"origin":6769,"position":4},"title":"The Fed Translated…..","author":"Tom Vanderwell","date":"March 18, 2009","format":false,"excerpt":"Well, it's time to do a little Fed translating again.\u00a0\u00a0 This one was a big one, so settle in and let's translate it.\u00a0\u00a0\u00a0 As usual, my comments are in bold and italics.Release Date: March 18, 2009 For immediate release Information received since the Federal Open Market Committee met in January\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9504,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9504\/the-fed-translated-and-why-it-isnt-good-for-interest-rates\/","url_meta":{"origin":6769,"position":5},"title":"The Fed Translated – and why it isn’t good for interest rates…..","author":"Tom Vanderwell","date":"August 13, 2009","format":false,"excerpt":"My apologies for taking almost 24 hours after the Fed to get this up.\u00a0\u00a0 As I\u2019ve done in the past, I want to go through what the Fed said yesterday and give some insights into what I think it means for the housing and mortgage markets.\u00a0\u00a0 You can find the\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=6769"}],"version-history":[{"count":3,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6769\/revisions"}],"predecessor-version":[{"id":6772,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6769\/revisions\/6772"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=6769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=6769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=6769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}