Easy Money is Ending, People

Fed Raising Interest Rates

Well, I suppose all good things must come to an end. That is, unless Donald Trump stacks the Fed and the current Federal Reserve policy of incremental rate increases are put on hold. But, then again, that’s a discussion for another day. For today – or rather tomorrow- the Fed will increase rates and thus generally impact the cost of borrowing across the board – although there isn’t a one for one correlation with an increase in mortgage rates.

And while the Fed is moving more gingerly now than in the past in tightening monetary policy, it is still moving inexorably in the direction of rate increases, with two additional increases discussed after tomorrow’s increase, later this year. The underlying motivation for these changes is based on a consensus that the economy is strong enough to withstand these increases. As noted in the article, the Fed believes that the economy is nearing its full economic potential plus inflation is moving towards the Fed’s 2% target. What remains to be seen, however, is how raising rates will affect President Trump’s stated economic goals and if he will take action to undermine the Federal Reserve’s independence.

Read the full article here: Easy Money is Ending, People

About the Author

Adam’s real estate experience encompasses residential sales, renovations, real estate development, property and asset management, and multifamily investment acquisitions. He has helped countless clients buy and sell property throughout the Bay Area, including in San Francisco, Marin County, Alameda County, San Mateo County, and Santa Clara County. He has overseen the condo conversion and major renovation of a two-unit building, and has worked on several affordable housing residential development projects with budgets exceeding $20 million, helping low-income families secure safe, affordable housing. He is currently working on a project that entails adding a condo unit to an existing building as well as a major horizontal expansion and renovation, increasing the total square footage to approximately 1500 square feet. Prior to working in real estate, Adam practiced immigration law and real estate law. His extensive background as an attorney and his broad real estate experience allow him to faithfully advance his clients’ interests in both the purchase and sale of real estate. Adam’s clients benefit from strong negotiation skills, contractual expertise, and deep knowledge of local rules and regulations.