Fed Expected to Hold Line on Rates

Observers predict the Federal Reserve Board will again hold the federal-funds rate steady at 5.25 percent at this week's Federal Open Market Committee meeting.
By: Deborah Lynn Blumberg: REALTOR® Magazine Online
This week's meeting of the Federal Open Market Committee is generating much attention as observers predict the central bank will once again hold the federal-funds rate steady at 5.25 percent.

Last month was the first time in about two years that the Federal Reserve Board did not increase the benchmark rate.

Thomas Girard of Weiss, Peck & Greer predicts investors will not flock to Treasury bonds until incoming data shows "fresh signs of the economy slowing even more dramatically."

If minutes from the meeting indicate policymakers are still concerned about rising inflation, Greg Bartoli, HSBC senior Treasury trader, thinks the 10-year yield could jump as high as 4.85 percent.