Entries by Renee Larr

Fed's Yellen: Rate Hike Not Likely Coming Soon

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Original Article: http://www.thinkadvisor.com/2015/02/24/feds-yellen-rate-hike-not-likely-coming-soon

 

Federal Reserve Board Chairwoman Janet Yellen gave an upbeat message to lawmakers Tuesday: employment has been improving “along many dimensions,” domestic spending and production have been increasing, and real gross domestic product (GDP) is now estimated to have increased at a 3.75% annual rate during the second half of last year.

However, in testimony before the Senate Banking Committee, Yellen noted that U.S. inflation continues to run below the FOMC’s 2% objective. “In large part, the recent softness in the all-items measure of inflation for personal consumption expenditures (PCE) reflects the drop in oil prices,” Yellen said.

Yellen also said that the FOMC considers it “unlikely that economic conditions will warrant an increase in the target range for the federal funds rate for at least the next couple of FOMC meetings.” The Fed’s next policy meeting is March 17-18.

If economic conditions continue to improve, as the FOMC anticipates, she said, the Committee “will at some point begin considering an increase in the target range for the federal funds rate on a meeting-by-meeting basis.”

The timing of normalization will depend critically on continued labor market improvement.

Said Yellen: “Provided that labor market conditions continue to improve and further improvement is expected, the Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when, on the basis of incoming data, the Committee is reasonably confident that inflation will move back over the medium term toward our 2% objective.”

Jim O’Sullivan, chief U.S. economist for High Frequency Economics, says that Yellen’s testimony was “fairly upbeat on the recovery, consistent with the expectation that policy normalization will begin before too long.” However, “she was not definitive at all on timing, but there was no sign of any significant change in views on the economy relative to those laid out at the time of the December press briefing.”

Said O’Sullivan: “There are still risks, of course, and for now inflation is too low, but officials continue to anticipate that inflation will move back toward 2% over time.”

As to oil prices, Yellen noted that while the drop in oil prices “will have negative effects on energy producers and will probably result in job losses in this sector, causing hardship for affected workers and their families, it will likely be a significant overall plus, on net, for our economy.”

Foreign economic developments, however, “could pose risks to the outlook for U.S. economic growth,"  Yellen said.

She added that the uncertainty surrounding the foreign outlook “does not exclusively reflect downside risks. We could see economic activity respond to the policy stimulus now being provided by foreign central banks more strongly than we currently anticipate, and the recent decline in world oil prices could boost overall global economic growth more than we expect."

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Not a One Trick Pony

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Revel & Underwood has been in the real estate business for over 30 years, providing numerous services to our clients. Brokerage, property management, investments...you name it. The Revel & Underwood team can do it. One part of the real estate puzzle that was missing was the residential piece. That is no longer the case. We now have the ability to market and sell your home as well as finding a new home. The Revel & Underwood team can give you all of the same perks of the big name residential companies but what sets us apart is our commitment to our clients. We are not listing 200 homes at a time and trying to juggle all of our clients. We provide first class service to all of our clients whether its a personal home to a multimillion dollar commercial property.  Our last two home sales were for $995,000 which was 100% of the asking price, and $260,000 which was 95% of the asking price. Both properties sold in 2 weeks or less after listing the home. If interested in selling your home, or if you are looking to purchase call Revel & Underwood and let us help you today!

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How do you RATE?

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10 year treasury rates fell under 2.5% in June making rates the lowest they have been all year!
 
If you are looking to refinance, buy, sell or develop now is a a fantastic time. Banks finally have more more to loan then clients and are providing much more aggressive and liberal terms than in the past.
 
Current Index Rates:
 
1  Month LIBOR 0.15%
5  Year T-Bill 1.61%
10 Year Swap 2.66%
 
So reevaluate your real estate portfolio and take advantage of the current market. As always if you require help looking for opportunities please contact us.

 

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Finding the Right Fit

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When in a hiring position it seems harder and harder to find the right person these days. With so many college graduates struggling to find jobs and people looking to change careers it can be a process. Recently being in this position of hiring I found it difficult to wade through the massive amounts of resumes that flooded my inbox. Do you hire a fresh new college grad that has a new look on things but lacks work experience and has been sitting in classrooms for the past 4 or 5 years? Or do you go with someone with experience but maybe doesn't have some of the new technical skills or innovative ideas. 
 
No matter which way you go you are getting a box of chocolates. You never know what you are going to get. When going through the process it may seem like it is important to get someone  and be done with it but that isn't the best case. We found that taking your time and biting the bullet on not having someone is the best strategy. Doing your diligence and asking the right questions is important. Being transparent on what the job is and laying out everything will ensure you will get someone who is interested in the position and not just there for the money until they get the job they want.
 
Finding the right fit is not always easy and not happen on the first try. Sticking with it and taking your time will ensure that you and your company are getting someone that will contribute to your company. 
 

 

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