AgentIndustry News

Federal funds rate could top 4% by year-end

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Mortgage rates are up again, moving steadily toward 6 percent, in lockstep as always with the 10-year T-note, itself marching toward 4.3 percent. In a week without economic data, China's currency revaluation and London terror got the ink, but the Fed was the real story – and will continue to be. China caught the markets unprepared on Thursday morning, a measure of its bankers' increasing skill. If you've got something big to do, don't fool around like a politician with leaks and preliminaries – just do it. The fact of the action was miniscule: a 2 percent increase in the value of the yuan. The portent is enormous: this revaluation is the first of many, many to come, and the event triggered a one-day wave of bond selling, receding and stabilizing on Friday. This first revaluation was symbolic, designed to head off the idiot fans of tariffs in Congress, and other U.S. critics of China's willingness to feed our junk habit. For now, and for some years ahead, our symbiotic ...