This afternoon the FOMC announced a .25%

March 22, 2018

This afternoon the FOMC announced a .25% increase to the Fed Funds Rate (1.5 – 1.75% target range) keeping with street expectations of a rate hike at this meeting. Expectations are mixed about whether there will be 2 or 3 more increases this year.

This means that the prime rate will increase by .25% tomorrow resulting in the base rate on the HELOCs going up to 4.75% effective tomorrow.

Full Statement:
Information received since the Federal Open Market Committee met in January indicates that the labor market has continued to strengthen and that economic activity has been rising at a moderate rate. Job gains have been strong in recent months, and the unemployment rate has stayed low. Recent data suggest that growth rates of household spending and business fixed investment have moderated from their strong fourth-quarter readings. On a 12-month basis, both overall inflation and inflation for items other than food and energy have continued to run below 2 percent. Market-based measures of inflation compensation have increased in recent months but remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The economic outlook has strengthened in recent months. The Committee expects that, with further gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace in the medium term and labor market conditions will remain strong. Inflation on a 12-month basis is expected to move up in coming months and to stabilize around the Committee’s 2 percent objective over the medium term. Near-term risks to the economic outlook appear roughly balanced, but the Committee is monitoring inflation developments closely.
In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1-1/2 to 1-3/4 percent. The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation.
In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal. The Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.


March 13, 2018

When I was 5 years old, my mother always

March 12, 2018

When I was 5 years old, my mother always told me that happiness was the key to life. When I went to school, they asked me what I wanted to be when I grew up. I wrote down “happy”. They told me I didn’t understand the assignment, and I told them they didn’t understand life.
Ones best success comes after their greatest disappointments.
It’s not about time, it’s about choices. How are you spending your choices?
You will succeed because most people are lazy.
The starting point of all achievement is desire.
If you want to achieve greatness stop asking for permission.
The only place where success comes before work is in the dictionary.
If you are not willing to risk the usual you will have to settle for the ordinary.
“Be who you are and say what you feel, because those who mind don’t matter and those who matter don’t mind.”

How does one become a butterfly? You mus

March 12, 2018

How does one become a butterfly? You must want to fly so much that you are willing to give up being a caterpillar.

March 11, 2018

March 10, 2018

March 10, 2018