Update: The 9/17/14 FOMC Statement And Its Possible Ramifications For REM
- The September two-day FOMC statement regarding the direction of interest rates was released on 9/17/14.
- It continued the FOMC policy that interest rates would remain low for a "considerable period" after QE cessation.
- The ten-year interest rate, however, has jumped 32 basis points in just the last month, erasing the year's gain.
- Many mREIT names declined on 9/18/14, confirming my original article's thesis of the relative safety of REM over individual mREIT names.