xhv8mzw7ge79waga35o97s2wbzpfr6 No Rate Moves "For Some Time" Even if the Economy Improves!

295 W Center St, Suite A

Provo, UT 84601

(801) 758-8970

(Brokered by RE/MAX Equity & partners)


FIG DISCLAIMER: No investments are guaranteed to result in profits. Net operating income, cap rates, and internal rates of return are subject to fluctuation and may experience a wide range of change, including the potential for operating losses. Factors affecting investment returns include, without limitation, changes in interest rates, tenant vacancies and defaults, property management expenses, repair and maintenance costs, HOA expenses, litigation, insurance rates, and relative strength and weakness in the local and regional economy. Past performance is not a guarantee of future returns. FIG does not provide tax or legal advice, and none of the statements or information on our website or sales materials should be construed as tax or legal advice. All investors are encouraged to seek advice from their own tax and legal professionals. All estimated returns on investments in FIG projects are subject to change and may be significantly different from actual financial performance. FIG is a brand used for the purposes of marketing. FIG is not an actual company but is used to brand the investment strategy used by those marketed on this website. © 2020 FIG & RE/MAX Equity

No Rate Moves "For Some Time" — Even if the Economy Improves

Updated: Jun 19, 2019

After talks at the May 1-2 Federal Open Market Committee meeting, it appears that Federal Reserve officials remain firm in their decision to move forward and be "patient" in their stance on saying that rates will likely remain unchanged moving forward into the future.

According to CNBC, "Despite their general optimism, the committee held the line on interest rates, primarily citing a lack of inflation pressures that allow the central bank to watch how events unfold before making any further moves."

It's important to note that these conclusions were arrived at days before President Donald Trump intensified the trade war between China—later resulting in the White House raising tariff's on May 10 as well as China's retaliation a few days following.

Earlier this year, the Fed indicated two potential rate hikes were likely this year. Since this announcement, the Fed has transitioned to their new forecast that suggests no moves in either direction.

"Officials also said they expect the first-quarter slowdown in housing spending to be “temporary” as consumer confidence recently has taken a solid uptick.

The Fed is holding its benchmark overnight funds rate in a target range of 2.25% to 2.5%. The rate had ticked to the upper end of the range prior to the meeting. That in turn prompted the committee to lower the interest it pays on bank reserves, used as a guidepost for the funds rate, to 2.35%. Since then, the funds rate has ticked lower but still remains near the upper end of the range."

#Utaheconomy #statistics #FinancialStrategy #Market