The INTEREST RATE SHOCK is Here… And Nobody’s Talking About It

You may have noticed recently that the Trump administration is looking to fire Jerome Powell from the Federal Reserve Chair position.

Although the Federal Reserve is meant to be independent, the administration’s view point is clear: get Powell out of the way (investigations, etc.) to influence and reduce the cost of borrowing — with the primary goal of driving the economy higher.

Trump is now calling for up to a 300 basis cut in the federal funds rate, which would allow more capital to cheaply flow through our economic system, with the intent of bringing down long-term borrowing rates as well (mortgage rates, too).

Keep in mind - the Federal Reserve still holds 2T+ of mortgage backed securities, and without those purchases from the pandemic years, we could see mortgage rates in the 10-11% rate versus today’s 6-7% range.

Now keep in mind, our government is always manipulating the cost of borrowing, the money supply, and spending to keep the economy moving, based on their priorities, while 68% of consumers are living paycheck to paycheck, and frankly, really struggling.

Gains from inflation go to those who own assets (usually the top 10%), while the majority of Americans own practically nothing.

More printing by the government over time will lead to high asset prices, and potentially higher interest rates (long-term) which will make housing even less affordable for the “have nots.” Will we turn into a renter nation?

This and more housing information and HOW to position yourself as a real estate agent and investor in today’s Florida market to WIN and grow.