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Not everyone’s happy with Fed’s pause at 5.25%

Mortgage market commentary

All long-term rates have risen gradually since the Fed's pause at 5.25 percent, the 10-year T-note from a 4.89 percent bottom to 4.96 percent, mortgages edging up from 6.5 percent. Some of this rise is a natural rebound from a straight-line decline. A more ominous upward push has come from the Revolt of the Old Guys, a most unusual group saying the Fed's pause is a mistake. Beyond mistake: delusional. On Monday, the day before the pause, Martin Feldstein, certified old-hand, calm, disciplined, finalist for Fed chairman, wrote an editorial for the Wall Street Journal. Couched in the polite language of policy-making economists, Feldstein demolished Fed Chair Ben Bernanke's rationale for a pause, swinging a velvet wrecking ball three times. One. "Waiting for more data before deciding to raise rates is not costless." Whatever you do, don't let inflation get ahead of you. Two. Referring to the Fed's official forecast for economic growth continuing as is, above 3 percent, unemployment bel...

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