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Fannie Mae Sees Faster Fed Rate Hikes

Posted To: MND NewsWire

Fannie Mae has moved its projected timeline for further Federal Reserve price hikes forward by several months. The company’s Economic & Strategic Research (ESR) Group points to an increase in the Fed’s favored measure of inflation, the personal consumption expenditures (PCE) deflator, which increased by 0.1 percent in February, bringing it 2.1 percent higher than a year ago. This was the first time in nearly five years the PCE had exceeded the Fed’s 2.0 percent target. Combined with the unemployment rate which was down 0.2 percent to 4.5 percent in March, the ESR says “firming inflation will prod the Fed to raise the fed funds rate in June and September, compared with September and December in the prior (ESR) forecast.” The minutes of the March Federal Open Market Committee (FOMC) meeting…(read more)

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Source: Mortgage News Daily

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