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August 28th, 2020 10:26 AM
Fed Chair Jerome Powell announced a major shift in monetary policy, i.e., the central bank will use inflation averaging instead of setting a hard target. Thus, they are no longer raising its rate to keep unemployment from falling too low and will allow inflation to run slightly higher then the 2% target but only after periods of economic weakness.
This will likely keep its lending rate at its current overnight near-zero for years as the economy recovers from the recession by the COVID-19 pandemic. 
Bottom Line: 
keep rates low for Home Equity lines of Credit but higher inflation will push up long-term home loan rates. But this will probably not happen till the economy has recovered enough to cause prices to rise. (not going to happen until the pandemic is brought under control). 

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Posted by Richard Wayne Abatelli on August 28th, 2020 10:26 AMPost a Comment

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