On The Market 4: The Fed’s Plan for Future Interest Rates w/The Wall Street Journal's Nick Timiraos
The Fed and interest rates—what one does, the other follows. Over the past two years, we’ve seen interest rates crash to all-time lows, only to skyrocket back up to decade-long highs at the start of this month. This turbulence has swept the legs of many prospective homebuyers and has caused the housing market to go from red-hot to lukewarm in only a matter of weeks. What’s causing these rapid fluctuations and are rising interest rates the new norm?
There’s arguably no one better to ask this question than Nick Timiraos, reporter and economic correspondent at The Wall Street Journal. Nick keeps a tight pulse check on The Federal Reserve at all times. In his newest book, Trillion Dollar Triage, he discusses why The Federal Reserve made the shocking moves they did in 2020, and how their decisions affect every American today.
Dave Meyer and James Dainard use today’s interview with Nick as a chance to ask the how, why, and when questions about The Federal Reserve, inflation, interest rates, and the housing market as a whole. Nick discusses the warning messages that The Fed has been sending over the past few months that should give investors an inkling of what is to come in the second half of 2022. If you’re a real estate investor or casual homebuyer, these signals could dramatically shift when and how much you offer on a home.
In This Episode We Cover
The main goals of The Federal Reserve and how they change markets to achieve them
How the 2008 housing market compares to the 2022 housing market
Where The Fed thinks we’re going in 2022 and how interest rates will affect this
The biggest factors influencing today’s high inflation rates and when we can expect to see a more normal economy
The silver lining behind a slower housing market that real estate investors should pay attention to
How investors can increase their chance of investing success in the coming years
And more economic obscurities!
Links from the Show
Connect with Nick
Email Nick: Nick.Timiraos@wsj.com
Nick's Wall Street Journal Profile
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-4
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