Market concern has been calmed to a degree with continued Fed commentary around the economy being already at or near neutral and the need to not pursue their previous projections of three increases in 2019. The Wall Street journal released a report yesterday stating the Fed is considering a halt to increases for all of 2019. An increase of .25% in the Fed rate is expected at the next Fed Open Market Committee on December 18-19 which would bring the rate to a range of 2.25% to 2.50%. Neutral is currently projected to be between 2.50% and 3.50%. Markets have priced in this increase and at this time are pricing in one rate increase in 2019, compared with expectations last month of two increases in next year.
REALTOR® | MCNE