The Smart Team of NOVA® Home Loans

MBS Day Ahead: Markets Waiting to Hear About The Other 2-3 Hikes This Year

Posted To: MBS Commentary

In 2011-2012, the notion that the Fed would " never " be able to extricate itself from an endless cycle of quantitative easing was not entirely uncommon. Even after tapering began in 2013, suspicions remained as to the inevitability of "QE4." The Fed next defied skeptics by finally raising rates for the first time in nearly a decade in December 2015. Undeterred, and perhaps a bit indignant at the Fed's gall, econo-bears moved on to characterizing the Dec 2015 hike as " one and done. " In other words, "sure, they may have pulled off that ONE hike, but what the hell were they thinking?! It wasn't justified and they certainly won't be able to hike again before the global economy implodes." After the election, the Fed's tune really started…(read more)

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Source: Mortgage News Daily

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