Fed could raise rates as soon as September

Officials encouraged by recent economic data on wages, growth

TRD New York /
Jul.July 10, 2015 04:15 PM

The Federal Reserve could raise interest rates later this year and possibly as soon as September, according to minutes from the Fed’s most recent policy meeting in June.

Officials were encouraged by recent economic data including indicators that wages are starting to rise more quickly, with the meeting’s tone and more recent public remarks suggesting the central bank is likely to raise rates later this year.

The minutes did not address the exact timing of an initial interest rate increase, according to the New York Times, though analysts said the meeting’s description suggested the Fed could raise rates as soon as September. Fed officials also concluded that economic problems during the winter were overstated, according to the newspaper.

John Williams, president of the Federal Reserve Bank of San Francisco, said this week that his staff had calculated 1.5 percent growth in the economy in the first quarter, compared to reports that had indicated a slight decline in economic activity.

An increase in interest rates could test momentum in the housing market, with low mortgage rates having helped home prices rebound in wake of the financial crisis. [NYT]Rey Mashayekhi


Related Articles

arrow_forward_ios

Fed cuts rates, signaling caution ahead for real estate investors

(Credit: iStock)

Mortgage REITs were doing great — until the yield curve inverted

Here’s what a Fed rate cut would mean to the US housing market

Homebuilder blues: Fed chair says Trump’s tariffs, immigration taking a toll

As Fed mulls rate cuts, real estate enjoys the good times but fears bad times ahead

More Americans are choosing not to tap into their home equity

Strong spring real estate season shaping up — but who’s got the advantage?

Buyers can reap savings as mortgage rates slide — but it’s not all good news

arrow_forward_ios