The Fed’s recent rate cut signaled something clear about the US economy, but what are they trying to say? With a bolder rate cut than many of us expected, homebuyers, business owners, and real estate investors are seeing the light at the end of the high-rate tunnel, where borrowing money and buying houses could come at a lower cost. But with markets already anticipating a rate cut, did the recent cut even really matter?
Today, Federal Reserve reporter from The New York Times, Jeanna Smialek, shares her thoughts on what the Fed move meant after studying them full-time for over a decade. Jeanna believes that the Fed feels confident, even if this recent rate cut was overdue. Inflation has seen a substantial dropoff, but on the other hand, unemployment is rising, and Americans are getting nervous. Did the Fed move fast enough?
Jeanna also shares the future rate cuts we can expect from the Fed, with more potentially coming this year and a sizable series of cuts already lined up for 2025. How significant will the cuts be, and will they be enough to stop unemployment from getting out of control? How will rent prices and home prices move due to more rate cuts? We’re answering it all in this episode!
Dave:
The Fed finally did it last week. The Federal Reserve went big and they cut the baseline interest rates, the federal funds rate by half a percentage point, and most analysts expected a rate cut. The Fed basically said that they were going to do that. And if you listen to this show, you’ve probably heard us talking about this anxiously and eagerly for a couple of weeks now. But last week’s rate cut and the Fed meeting was full of new information and left me with a lot of new questions to help me answer those questions. I’m bringing on a professional fed researcher and reporter, the New York Times, Jeanna Smialek to help us answer all the many questions I am sure we all have about where the fed’s going and what’s going to happen with interest rates.
Hey…