On The Market

Trump’s New Fed Pick Could Raise Interest Rates, Defy Expectations


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A new Fed Chair has been nominated—and he could do what no Fed has done before.


Kevin Warsh, the youngest Fed governor appointed, serving during the Great Financial Crisis, is Trump’s new pick, and his decisions could have major impacts on the housing market. But the mainstream media is missing a few key variables, falsely assuming that Warsh will kick off a series of rate cuts that end in lower interest rates.


But, in reality, something completely different could happen—something that the Fed has never tried before.


Warsh has strong opinions on quantitative easing (money printing) and wants to, in essence, delete some of the money the Fed has created over years of buying bonds and mortgage-backed securities. At the same time, Warsh will most likely push for rate cuts—a challenge given the Fed’s divided members.


So, what does this mean for mortgage rates? Could we see rates actually rise due to Warsh’s plans, or could ending quantitative easing boost market confidence and lower long-term mortgage rates? We’re getting into it all, plus what investors should do now regardless of what the Fed’s next moves are.


In This Episode We Cover

Trump’s new Federal Reserve Chair pick and why Trump is so keen to kick Powell out

Higher mortgage rates incoming? What everyone is getting wrong about the Warsh pick

The end of money printing: Why the new Fed Chair pick wants to delete dollars off the balance sheet

Something the Fed has never done before: Can you lower rates while keeping inflation in check?

The one type of real estate that could greatly benefit from the moves Warsh will make

And So Much More!


Links from the Show

Join the Future of Real Estate Investing with Fundrise

Join BiggerPockets for FREE 

Join us at the BiggerPockets Conference October 2-4 in Orlando. Buy tickets

Sign Up for the On the Market Newsletter

Find Investor-Friendly Lenders

A New Fed Chairman is Coming Soon—Here’s What Their Potential Low-Rate Policy Will Mean For Investors

Dave's BiggerPockets Profile

Grab Dave’s Book, "Real Estate by the Numbers"


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