A one-half percent raise in the Federal Funds rate is expected when the Fed meets this week.

We don’t know about you, but we are tired of hearing that the Federal Reserve Board is going to raise rates at their next meeting. Many years ago, the Fed was somewhat secretive about their intentions so that they were not moving the markets with their words from day-to-day. Well, that era is definitely over.  It seems as though a Fed Governor was giving testimony to Congress or a speech to some other organization just about every day for the past several months.

And they effectively “talked rates higher” each time they spoke. Yes, they are going to be diligent about fighting inflation. Yes, they are going to raise interest rates several times this year. Yes, they have stopped purchasing mortgages and bonds and are going to allow their tremendous holdings of these instruments to runoff over time. We have heard these things time and time again.

Well, the Fed meeting has finally arrived. We know what is most likely to happen -- an .50% increase in the Federal Funds rate. And there will be headlines all over the media.  But don’t be surprised if mortgage and other long-term rates do not move up in response to the Fed’s actions when the meeting concludes tomorrow. That is because the Fed has already “talked” those rates higher.  Absent strong language in the statement released after the meeting concludes, the resultant feeling could be a modicum of relief.