By Amrita Jayakumar | The Washington Post
Worry and speculation have consumed investors since Chairman Ben Bernanke spoke to Congress last month about the Federal Reserve’s drive to keep long-term interest rates at record lows.
The Obama administration made a directive in April to cancel discretionary bonuses because of automatic spending cuts.
Rates are now hovering near 4 percent, still historically low, but nearly two-thirds of a percentage point higher than last month. They have been driven up by anticipation that the Federal Reserve could soon begin scaling back its generous bond-buying program. The mortgage market is closely watching the central bank’s meeting Wednesday that could determine whether rates shoot even higher.
