The Federal Reserve has spent the past year or so fighting inflation as hard as they can. They’ve raised the federal funds rates, resulting in a stunted housing market, higher unemployment, and more economic uncertainty as the fear of a recession becomes more real by the second. Their end goal is simple: control the cost of goods and services to the best of their ability, and they’re doing anything and everything to get there.

Last week, Jerome Powell and the Federal Reserve made statements that foreshadow clear economic impact. No matter what line of work you’re in, how you’re investing, or whether or not you even pay attention to the economy, you will be affected. This war against inflation has caused some serious economic backlash, but the worst may be yet to come.

On this Friday episode of On The Market, Dave takes some time to decipher what Jerome Powell (Chair of the Fed) meant by his statements. What type of economic impact can you expect over the next coming months, and how will real estate investing, interest rates, and returns be affected by this news? If you’re a renter, homeowner, or still shopping the market, this news directly affects you.

In This Episode We Cover

How federal funds rates indirectly affect mortgage rates rising and falling

Mortgage and interest rate predictions and how long we’ll remain in “high rate” territory

The Fed’s focus in the next few years and what they’ll do to ensure inflation declines

Housing market forecasts for 2023 and a glimmer of hope for buyers

The oncoming economic recession and how the Fed is building the perfect storm for unemployment

Bond yields vs. mortgage rates and how they too work in tandem

And So Much More!

Links from the Show

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Connect with Other Investors in the “On The Market” Forums

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Dave’s BiggerPockets Profile

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Housing is Unaffordable, But Could It Actually Get Worse?

The Fed Basically Admitted It. They Want a Housing Correction

Read Jerome Powell’s Full FED Transcript

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-39

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