Ole Jerome Powell and his fellow Reserve crew have signalled that they are seeing interest rate CUTS coming…..
Immediate response?
Stock Market rockets UP , as forecasters talk about a ‘soft landing’ of the economy , not a crash recession….
Interest rates for mortgage’s drop below 7% for the first time in a while….
And the Good economic news HAS to be good for a President hungry for a ‘pat on the back’ and better poll numbers….
Mortgage Rates…
U.S. mortgage rates dropped below 7 percent for the first time since August, according to new data released Thursday by Freddie Mac.
Mortgage rates have been falling steadily for the past seven weeks as inflation has eased, and the latest dip follows signs from the Fed on Wednesday that interest rates could come down next year.
“Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the federal funds target rate next year, we likely will see a gradual thawing of the housing market in the new year,” said Sam Khater, Freddie Mac’s chief economist, in a statement.
The average 30-year fixed-rate mortgage rate fell to 6.95 percent as of Thursday, according to Freddie Mac’s latest Primary Mortgage Market Survey. This time last year, the average rate was 6.31 percent.
The average 15-year fixed-rate mortgage ticked up to 6.38 percent from 6.29 percent last week, however, well above the average of 5.54 percent a year ago….
The Stock Market Rally…….
Financial markets rallied Thursday as Wall Street grows increasingly confident the economy has achieved a “soft landing” from high inflation without a recession.
The stock market stretched a record-breaking rally into a second day after the Federal Reserve signaled Wednesday that it could begin cutting interest rates next year.
“The Fed believes they have the soft landing in the bag. Clearly, markets believe them now,” Callie Cox, a U.S. investment analyst at eToro, said in a statement.
The Dow Jones Industrial Average was up 92 points — roughly 0.3 percent — just before 1:30 p.m. Thursday after hitting an all-time highWednesday, surpassing 37,000 for the first time…..
I’ve read over the past year or so you criticisms of Powell while constantly blabbering about inflation.
As usual when you get on one your silly rants?
I just chucked and moved on.
Now? Well “ ole” Jerome ain’t so bad.Once again, I chuckle.
Ole Jerome is NOT one my favourite people….
His push to raise interest rates seemed to me to be tooooo long….
He HAS taken beatdown’s for the past few months….
THAT has helped him and his crew stop in their tracks….
GOOD…..
People NEED a break in the prices for things that they have to borrow money to obtain….
You do understand that raising interest rates in inflationary times is SOP?
And quite apparently it worked as inflation has and continues to come down.
Remarkably a recession which often results from such action ( see early 80s) hasn’t occurred.
Yeah Powell is a real villain!
Indeed he HAS BEEN!
Ask Sen Rand Paul!
CONSUMER PRICES…….
So Powell is “ responsible “ for Consumer prices?
I see I see.
Idiotic.
What if Chairman Powell had continued the pandemic-stimulus policy of keeping interest rates near zero?
How much do you think, James, that that would have lowered (rather than increased) prices?
Smaller products ?
No effect….
Larger items, as I point out, would have meant lower prices for Big Ticket things cars, homes, etc….
NO he isn’t….
Neither is Biden actually…..
But HIGHER interest rates RAISES Consumer costs…..
No doubt.
However ,raising interest rates to reduce consumer spending is the standard Federal Reserve response to inflation.
ANY Fed Chairman would have responded as Powell did.
Your attempt to demonize him was ridiculous.Find a new object for your often misplaced ire.
Ah Jack?
I was hardly the only guy annoyed at ole Jerome….
Matter of fact?
Why do u think the market rallied?