{"id":9195,"date":"2015-06-18T05:28:25","date_gmt":"2015-06-18T10:28:25","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9195"},"modified":"2015-06-18T05:28:25","modified_gmt":"2015-06-18T10:28:25","slug":"fed-chair-yellen-tells-canadian-homeowners-to-watch-out-don-pittis","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9195","title":{"rendered":"Fed chair Yellen tells Canadian homeowners to watch out: Don Pittis"},"content":{"rendered":"<div class=\"story-headline\">\n<h3 class=\"story-title\"><a href=\"http:\/\/www.cbc.ca\/news\/business\/fed-chair-yellen-tells-canadian-homeowners-to-watch-out-don-pittis-1.3117599\" target=\"_blank\">Fed chair Yellen tells Canadian homeowners to watch out: Don Pittis<\/a><\/h3>\n<\/div>\n<p class=\"story-deck\"><strong>Your mortgage rates are going up, and U.S. Fed chair is pretty specific on how much<\/strong><\/p>\n<p>The financial analysts think they have it figured out. After listening to U.S.\u00a0Federal Reserve chair Janet Yellen&#8217;s\u00a0speech and her wily answers to questions from reporters, the consensus seems to be that\u00a0a rate rise is coming later this year\u00a0\u2014 the first one probably in September.<\/p>\n<p>While that date is of crucial interest to market wheeler-dealers, for Canadian mortgage-holders\u00a0Yellen\u00a0had a far more important message. It is especially important in a week when Manulife\u00a0warned that for many home\u00a0owners, a rate hike could be trouble.<\/p>\n<ul>\n<li><strong><a href=\"http:\/\/www.cbc.ca\/news\/business\/fed-keeps-interest-rate-steady-but-hints-at-hike-to-come-1.3117342\">Fed keeps rate steady but hints at hike to come<\/a><\/strong><\/li>\n<li><a href=\"http:\/\/www.cbc.ca\/news\/business\/rate-hike-could-leave-mortgage-holders-stretched-survey-finds-1.3115612\"><strong>Rate hike could leave mortgage holders stretched<\/strong><\/a><\/li>\n<\/ul>\n<p>While a large majority of Yellen&#8217;s advisory committee agrees that the economy will require a rate rise before the end of the year, Yellen herself said the exact moment of such a rise\u00a0really doesn&#8217;t matter.<\/p>\n<p>&#8220;The importance of the timing of\u00a0the first decision to raise rates is something that should not be overblown, whether it is September or December or March,&#8221; said Yellen in response to a question.\u00a0&#8220;What matters is the entire path of rates.&#8221;<\/p>\n<h2>Best guesses<\/h2>\n<p>Of course neither Yellen\u00a0nor the rest of the Federal Open Markets Committee members actually know\u00a0for sure where the economy is headed. All they can do is make their best guesses,\u00a0based on examining all the latest economic indicators,\u00a0then sort of sum up to come to a collective conclusion.<\/p>\n<p>As Yellen said yesterday, the committee&#8217;s best guess is that the U.S. economy has begun expanding moderately after a sickly first three months of the year. Jobless figures show that the supply of surplus labour is gradually being used up.<\/p>\n<p>Consumer spending is still pretty soft, they conclude,\u00a0but the housing market has perked up.\u00a0On the downside, business investment in plant and equipment remains soft. So do exports.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fed chair Yellen tells Canadian homeowners to watch out: Don Pittis Your mortgage rates are going up, and U.S. Fed chair is pretty specific on how much The financial analysts think they have it figured out. After listening to U.S.\u00a0Federal Reserve chair Janet Yellen&#8217;s\u00a0speech and her wily answers to questions from reporters, the consensus seems [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[103,1956,3544,3000,4936,303,305,6453,1583,1154,451,4869],"class_list":["post-9195","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-canadian-housing-market","tag-cbc","tag-cbc-news","tag-don-pittis","tag-fed","tag-federal-reserve","tag-homeowners","tag-housing","tag-interest-rate-policy","tag-janet-yellen","tag-mortgage-rates"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9195"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9195\/revisions"}],"predecessor-version":[{"id":9196,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9195\/revisions\/9196"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}