Last week, I issued a “rate warning,” and then the Fed surprised after its meeting — not by standing pat, which everyone expected, but by reducing the whole slope of future rate forecasts and emphasizing overseas instability over U.S. risk of inflation. I heartily concur with the Fed’s decisions. However, here in the housing business, concerns continue. First, for rates to go lower, we’ll need more bad stuff to happen overseas — and we may not get that soon, or bad enough.
- Last week, the Federal Reserve reduced the slope of future rate forecasts and emphasized overseas instability over U.S. risk of inflation.
- The Fed today has some concern that the oil and commodity downward shock of the last two years will reverse, and/or the fall in import prices caused by a strong dollar.
- The Fed’s decision last week was big in part because every measure of core inflation began to turn up at the end of last year.
The premier event for luxury agents and brokers
Luxury Connect | Oct. 16-18 | Beverly Hills