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Different Day, Same FOMC Meeting

Hello, everyone, and welcome back to the Mortgage Rundown.

Today, we're talking about what's happening in the capital markets. By now, you probably know that we had the FOMC meeting. Now, if you've seen prior meetings, you notice that not a lot has been said or a lot has been done. Right? They have not raised interest rates. They have not tapered asset purchases. And this last meeting was really no different.

They really didn't want to address or really take a strong direction on inflation, other than to say it's temporary. They didn't address the labor market, you know, in terms of the number of job openings equals the number of unemployed. But they're still saying the labor market is constrained and they don't even want to talk about talking about tapering just quite yet.

And so, we really have to wait for future meetings. And so, what they're really waiting on, at least in my mind, is they need to look at this whole Delta variant and whether or not this actually becomes a spike and could impact growth or the unemployment rate. And they really have to continue to watch inflation to see if there are any gauges out there that some of this inflation actually might be permanent. And they actually really also have to look at the job market to decide what direction is it going? Is there enough strength where they actually can start talking about talking about tapering?

All right, everyone. That's it from the capital markets desk this week. Thank you all for watching and have a great day.