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To: Chip McVickar who wrote (23190)5/14/1999 11:18:00 AM
From: TimbaBear  Read Replies (1) | Respond to of 44573
 
I am a former Mortgage Loan Originator and have a question. Several years ago, I was seeing mortgage interest rates rising for weeks ahead of an FOMC meeting. The thinking in the marketplace seemed to be that the Fed would do nothing, but the rates kept inching up. Then, the Fed met and announced a hike (I forget the size of the hike) and there was a rally in stocks and bonds. The hindsight thinking at that time seemed to be saying that this was relief that the Fed was taking action to prevent inflation from taking hold. This "feels" the same to me now as what happened then. My question is this: "If the Fed raises rates 25 basis points now and gives the impression that they are engaging in a course of action that would reverse the three 25bp decreases from late last year, what impact do you see that having on the stock and bond markets?"