The Fed faces a tough balancing act

The Federal Open Market Committee (FOMC) will meet on June 23rd and 24th. The FOMC is expected to hold rate policy steady and its target range for interest rates unchanged at 0.00- 0.25%.The FOMC is also expected to maintain its current target for the purchase of bonds and mortgage debt. How the Fed elects to respond, if at all to the recent rise in US mortgage and long-term bond yields will be key to the market impact of the FOMC meeting. Over the past few weeks’ speculation emerged that the