Ep. 219 - Is The Fed About to Cut Rates Faster Than Expected in 2024?

Will The Federal Reserve's Favorite Inflation Metric Force Faster Rate Cuts in 2024?

Quinton dives deep into the Personal Consumption Expenditure (PCE), the Federal Reserve's preferred inflation measurement tool. He breaks down why the recent uptick in PCE readings shouldn't cause alarm, explaining how the shelter component's lagging indicators are painting a picture that doesn't match real-time market conditions.

The discussion shifts to a significant announcement from the Federal Housing Finance Agency about increasing conventional loan limits for 2024. Quinton presents a historical perspective on loan limits, demonstrating how they've evolved from $252,700 to the upcoming 2025 limit of $806,500, reinforcing his argument that housing market fundamentals remain strong despite contrary narratives circulating online.

[00:00] - PCE Data Analysis and Inflation Trends

[04:12] - Deep Dive into Shelter Component

[05:14] - New Conventional Loan Limits for 2024-2025

[10:37] - Employment Market Analysis and Federal Reserve Implications

[14:14] - Consumer Savings Rate and Future Economic Indicators

Key Quotes:

"Housing is not a bubble that is going to collapse and it's not 2006 all over again." - Quinton Harris

"For the first time, our savings rate is increasing in America because the jobs are paying more." - Quinton Harris

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