Federal Reserve Chair Janet Yellen indicated last week that the central bank would likely target December for an increase in the benchmark rate. Fed officials will meet on December 14 for a policy meeting with the primary agenda item being short-term interest rates.
Yellen made her comments during testimony before the Congressional Joint Economic Committee on Thursday. She also expressed concerns about economic stability under a Trump Administration. The president-elect targeted Yellin during the campaign, accusing her of imposing harmful regulations and picking sides during the election.
The Fed last raised its key interest rate in December 2015 and projected at that time that it could raise rates an additional four times in 2016. Lackluster jobs numbers and low inflation, however, has caused the central bank to keep the status quo thus far in 2016.
Currently, mortgage rates remain lows with conforming no-point 30-year fixed rates averaging 4.00 percent while the 15-year rate is near 3.125 percent.
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