Ep. 185 - “Split” Federal Reserve | The Battle for Lower Interest Rates

Are you ​curious about the Federal Reserve's latest decision and what it means for your wallet? This episode breaks down the recent Fed meeting, exploring the signs of internal disagreement among Fed members. We examine Jerome Powell's unusually shaky performance at the podium and what it might reveal about upcoming rate decisions. The episode highlights the critical role of the labor market in shaping Fed policy, particularly focusing on the importance of Friday's BLS report. We discuss the potential for rate cuts in September, the global context of central bank decisions, and how these factors could impact mortgage rates. Whether you're a homebuyer, an investor, or simply interested in the economy, this episode offers a clear explanation of the Fed's current stance and its possible effects on your financial future.

[00:00] - Introduction to the "split Fed" concept

[02:17] - The water faucet analogy and Fed's current stance

[04:42] - Analysis of Fed's statement and Powell's podium performance

[07:38] - The importance of the BLS report and birth-death rate model

[09:12] - Powell's comments on inflation and the labor market

[12:32] - Comparison with other central banks and future rate cuts

[14:47] - Conclusion and preview of the next episode

Resources:

https://bit.ly/185resources
(Credit: MBS Highway)

Key Quote:
“If we get the data, we think a September rate cut is on the table." - Quinton Harris

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