Federal Reserve stays the course

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The Fed


The Federal Reserve decided to leave rates alone at their mid-June meeting, citing a very weak jobs report in June and downward revisions to the two previous months of job reports.

The Fed raised short-term rates in December of 2015 for the first time in nine years because economic data indicated that the economy was finally on the mend.

The guidance that the Fed gave at that time was that they were planning on raising rates four times this year at a pace of a quarter of a point per raise.

The statement that the Fed made after the June meeting indicated that they were likely to scale back that estimate from four increases to two, and the two increases haven’t started yet.

The Fed also slightly scaled back their economic forecasts for the rest of 2016 and 2017. The upcoming months of economic news (particularly the jobs report) will tell us a lot about the state of the economy and where interest rates are heading.

For now, consumers are enjoying near historic lows for refinancing and buying new homes. Only time will tell where we will end up.

To contact me, call 773-557-1000 ext. 15, e-mail ron@ronmortgage.com or visit http://www.ronmortgage.com.


About Ron Ricchio

Renato (Ron) Ricchio is president of Chicagoland Home Mortgage. He grew up in Westchester and attended St. Joseph High School and DePaul University, taking a job as a loan officer in the mortgage industry soon after graduating with a bachelor's in finance in 1991. He started his own company in 2001, which he operates today. He has been ranked in the top 150 loan originators in 2010 and 2011 by Origination News. Ron is happily married with three beautiful children. A board member of San Francesco Di Paola Society and the founder of Ricchio Family Toy Drive for Lurie's Children's Hospital, he enjoys cooking and spending time with family and friends.

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