Federal Reserve Forum

The Federal Reserve has now completed 15 consecutive 1/4 rate increases since June of 2004. This means that if you have a home equity line, your rate has nearly doubled from 4% to 7.75% over the past year and half. According to Tom Millon of the Capital Markets Cooperative, “The futures market placed 100% probability on a 5.00% funds rate in May, and 40% odds on 5.25% shortly thereafter in June. A week ago, the odds of a June hike were virtually nil. Rising commodity and energy prices, rising employment, rising gold, and a growing world economy create ripe conditions for the potential to add to inflationary pressures."