There were several important announcements last week regarding the economy and the Federal Reserve.
The minutes following the Fed’s 2 day meeting showed there was no increase in short-term interest rates. The minutes reflected a high probability of a .25% increase at it’s December meeting. Mortgage rates remain excellent with the 30 YR conventional between 3.875% to 4.125% (APR: 3.98% -4.3%).
FED CHAIR NOMINEE
President Trump nominated Jay Powell as his selection to chair the Fed for the next 4 years. Mr. Powell is expected to continue a similar monetary policy as current chair, Janet Yellen. The markets responded favorably to his nomination.
October’s jobs report was excellent as the economy rebounded from effects of the recent hurricanes. There were 261,000 new jobs created and the unemployment rate dropped to a 17 year low at 4.1%. The challenge going forward is for employers to find qualified employees.