Federal Reserve Meetings and Mortgage Rates March 21, 2023

The Federal Reserve uses its ability to raise and lower the Fed Funds Rate to tighten both financial conditions and lending standards. When they raise that rate, it results in reduced lending and investment, which leads to slowing economic activity, and that usually brings on a recession. The most recent events of two large investment banks failing, financial conditions and lending standards have quickly tightened even more.  So with the Fed meeting today, will they continue to it’s trend of raising the Fed Rate?  Or will they feel that combined with their raising rates over the last year and these recent bank failures the economy is slowing enough to curb inflation?  We will know tomorrow about 2:00 pm ET.