Source : iHumanMedia.com Bank America and CIT Group confirm expectations for Sept. 2015 to begin a series of interest rate increases by the Federal Reserve. Likely dates are Sept. 17, Dec. 16, or March 16, 2016; based on market conditions. Many home buyers are scrambling now to lock-in lower interest mortgage payments.
Federal Reserve to Raise Interest Rates Sept 17th – Impact on Economy
Higher Interest Rates Effect on Home Buyers Purchasing Power …
For months, economists have expected the Fed to hike short-term interest rates for the first time since 2006 during this meeting. ‘We do think the Federal Reserve will hike interest rates by 25 basis points on Thursday (Sept. 17th),’ said Michelle Meyer, deputy head of U.S. economics at Bank of America (BAC) Merrill Lynch. ‘The Fed is likely to characterize the rate hike as the beginning of a slow normalization process, rather than a sharp hiking cycle.’ Meyer thinks the Fed will tread carefully when commenting on the weakness in China recently and unprecedented volatility across the stock market. ‘They could talk about financial conditions broadly and say that financial conditions have tightened, and as a result, would warrant a slower cycle [of normalization].’ TheStreet’s Scott Gamm speaks with Meyer from New York.