At noon EST tomorrow, December 15, the Fed will raise its rate for the first time since June 29, 2006. A lot of your clients have retired since, or were in school then. No matter how much you have heard about the Fed’s pending “liftoff,” your clients will be alarmed by all the yelling.
- The idea is to provide clarity to them, basic information, and to protect them from all the yelling.
- Banks trade cash amongst each other overnight, every night, and the “Fed funds” rate is the fundamental cost of money. The Fed might raise that rate two or three or eight times without raising mortgage rates.
- "Prime" rates and adjustable-rate mortgages due for adjustment will rise with the Fed.