LendingTree Fed Rate Forecast: Chief Economist Predicts Fourth Straight Pause at December 12 Meeting

Released  December 11, 2006
By Megan Greuling

CHARLOTTE, N.C., December 11, 2006 – The next Federal Reserve meeting will take place tomorrow. LendingTree Chief Economist Jim Svinth predicts a pause in interest rate hikes, the fourth straight pause this year.


“The FOMC will likely stay in pause mode at their December 12, 2006 meeting,” says Svinth. “With the cross-currents of core inflation on the one hand and the housing and auto sectors in a downdraft on the other, the Fed will likely want to collect more data points before making a move in either direction.”


The Federal Reserve raised interest rates 17 straight times from June 2004 to June 2006. Meetings from August to October 2006 have resulted in a halt in rate moves, allowing previous hikes to work into the system and take affect.


“Tomorrow’s meeting will be more of the same,” Svinth states, “The real question is when will the decrease in Fed Funds take place?”


About LendingTree, LLC


LendingTree, LLC is the nation’s number one online lending exchange, providing a marketplace that connects consumers with multiple lenders that compete for their business. Since inception, LendingTree has facilitated more than 20 million loan requests and $152 billion in closed loan transactions. LendingTree provides access to mortgages and refinance loans, home equity loans/lines of credit, auto loans, personal loans, and credit cards via www.lendingtree.com and 800-555-TREE.


Launched in 1998 with headquarters in Charlotte, North Carolina, LendingTree, LLC is part of IAC Financial Services and Real Estate, an operating business of IAC/InterActiveCorp (NASDAQ: IACI), which also owns or operates LendingTree Loans, LendingTree Settlement Services, LLC, GetSmart®, RealEstate.com®, Domania®, and iNest®.