Shelter Six:  Fed Chairman Confirms Rate Cut Coming

Twice a year, the head of the Federal Reserve provides an update to Congress and then answers questions.

During last week’s testimony, Fed Chair Jerome Powell reinforced recent investor outlook that the Fed will cut rates at the next meeting on July 31.

The main reasons Powell gave for the eminent rate cut were slowing business investment, uncertainty about global economic activity, and trade tensions.

Overall, his comments were in line with expectations, and the main question for investors going forward is whether there will be additional rate cuts later in the year.

The latest inflation report showed inflation increasing at a higher rate than expected.

June’s Core Consumer Price Index was up .3% from May above the expected .2%.

Rate Update

Stronger than expected inflation data was unfavorable for mortgage rates last week.  The highly anticipated testimony from Fed Chair Powell caused some volatility, but its net effect was small.  As a result, rates ended the week higher.

This Week

Retail Sales and Industrial Production will be released on Tuesday while Housing Starts will come out on Wednesday.

July 12, 2019 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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