3.19.2015

What The What? Yellen Confuses The Peeps....

This week the Federal Reserve sent market investors over the cliff and then threw them a safety line as they pulled back on their language as to how they will approach interest rates the remainder of the year. The Fed removed the word 'patient' on their outlook on raising rates and then Fed Chief Yellen back pedaled the next day saying they weren't going to be impatient. Huh? 

After one paragraph of double speak from a bunch of bureaucrats my hair hurts so let's simplify. Money is going to get more expensive this year be it in May/June or further into the calendar. Since no rate increases have taken place since '06 it's likely time. What's this mean for consumers?  If you want to borrow money as in buying a house or refinancing, the time to do that is now. Often when the threat of higher rates becomes public the market has already reacted and raised them so don't presume rates will be static until the Fed acts. Those who wait will pay. Everyone has to move on their own timeline which is fine if you don't mind paying more for the cash you want to borrow. 
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