AgentIndustry News

Fed poised to hike key funds rate

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Most of a bond-market fright has passed, and long-term rates are back to the low end of a range that has held since last July: low-fee mortgages are 5.625 percent and the 10-year T-note is 4.13 percent. Long Treasurys had traded 4.22 percent in anticipation of all the things that could go wrong next week. On Wednesday the Fed will hike another quarter-point to 2.5 percent, but hints at its future intentions in the companion statement are the scary part. Next Friday will bring news of January payrolls, each month's single most-powerful bond-market-moving datum, each defying all attempts at forecast. Then there's the Iraq election, the State of the Union and congressional reaction – in sum, enough to make sensible traders get under their desks and stay there. Offsetting all that this morning: 4th quarter '04 GDP rose only 3.1 percent, almost a point under forecast (the United States bought foreign production, not its own). Also in the report: the best measure of inflation, the cor...