Fed Leaves Rates Unchanged

With no surprise the Fed did not move to raise the Fed Funds & Discount Rates. They provided rhetoric that inflation remains a concern, there was on descending vote in favor of raising rates. This means we will most likely continue to see a rise in energy and food prices.

Initially mortgage-backed securities were trading lower, meaning higher remortgage rates; hover within forty-five minutes of the announcement rates have gained back their losses and should be unchanged. The volatility continues.

Paul Cantor, (804) 433-1510