Ep. 215 - Will the Fed Cut Rates by 200 Basis Points in 2025?

Will the Fed's 200 Basis Point Rate Cut Change the Housing Market in 2025?

In episode 215, Quinton Harris shares a comprehensive analysis of the Federal Reserve's recent meeting and its implications for future rate cuts. He examines Powell's acknowledgment of the 3-month and 6-month core PCE as key metrics, suggesting a shift toward a more neutral monetary policy stance that could lead to nearly 200 basis points in rate cuts.

The episode tackles the three major incentives driving the Fed's rate reduction strategy, including market stability, national debt management, and housing market dynamics. Here we talk about why home builders are choosing to offer incentives rather than reduce prices, and how this strategy connects to broader labor market concerns that could accelerate the Fed's rate-cutting timeline.

[00:00] - Introduction and Fed Meeting Overview
[02:43] - Powell's Key Comments and PCE Focus
[04:48] - Understanding Neutral vs. Restrictive Rates
[07:58] - Three Fed Incentives for Rate Cuts
[12:07] - Housing Market and Builder Strategy Analysis
[19:17] - Powell's Future and Leadership Discussion

Key Quotes:

"If we start seeing signs of the labor market weakening, you can bet that 200 basis points is going to be cut much quicker than the duration of 2025." - Quinton Harris
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