March Rate Hike – FOMC Quotes

The probability of a rate hike in the March 15th FOMC meeting went from 48% yesterday, to 82% today. The 3-month Treasury Bill went from 0.48% yesterday, to 0.63% yield today. Mortgage applications spiked 5.8% this week in comparison to last week. It seems like investors are already pricing in an interest rate hike. Here are some key quotes of FOMC members from yesterday:

 

 

February 28th

James Bullard, President of FOMC, 2017 Committee Member – Non-Voter

Venue: Economics lecture at George Washington University, DC

“I haven’t seen data in just the last couple of days that would have made me feel that the probabilities should have changed.”

 

William C. Dudley, President of FRB New York, 2017 Committee Member – Voter

Venue: Interview on CNN International

“The case for monetary policy tightening has become a lot more compelling. After the election we’ve seen very large increases in household and business confidence, we’ve seen very buoyant financial markets.”

 

John C. Williams, President of FRB of San Francisco, 2017 Alternate Member – Non-Voter

Venue: Speech to the local chamber of commerce in Santa Cruz, California

“In my view, a rate increase is very much on the table for serious consideration at our March meeting. The aim is to keep the economic expansion on sound footing — not too hot, not too cold — that can be sustained for as long as possible. We’re very close to achieving our dual mandate goals. Yet monetary policy essentially still has the pedal to the medal.”

 

Patrick T. Harker, President of FRB of Philadelphia, 2017 Committee Member – Voter

Venue: Speech at Temple University, Philadelphia

“I see three hikes as appropriate for 2017, assuming things stay on track.”

 

 

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