Hello everyone. Welcome back to the Mortgage Rundown. Today we are going to talk about what’s happening in the capital markets.
A quicker update this week as we await next week’s FOMC meeting and their decisions on interest rates. Jerome Powell did come out last week and tell the market that he expects to raise rates 25bps versus some of the calls out there for 50bps to combat inflation. The Fed prefers to be more cautious in terms of slowing down the economy and willing to let inflation run it’s course over the next year.
Inflation and specifically oil prices have taken center stage given the fact that they have gone up 25% in the past two weeks but some calling for them to increase even further.
Pain at the pump continues with the wholesale price of gasoline going up almost $1 a gallon in just two weeks. The big question is whether or not the United States government plans to do something about it.
Gas prices are up $2.50 a gallon since Joe Biden was elected into office and my hope is that the current administration takes control of the situation. We certainly don’t want inflation to cause a recession.
That’s it everyone from the capital markets desk this week. Stay tuned next week as we expect more news and potential policy changes to combat inflation and the economy. Thank you all for watching and have a great day.