The Relationship Between Mortgage Rates and the 10-Year Treasury

This chapter discusses the relationship between mortgage rates and the 10-year treasury, exploring the factors influencing interest rates and the role of the Federal Reserve in the economy.

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The Fed has put the American economy under extreme pressure to lower inflation. Mortgage rates are now at twenty-year highs, job openings are starting to fall, “cautious consumers” return, and a 2024 recession is still in the cards. Everything the Fed wanted is finally happening…but it’s not happening fast enough. Can anything solve the inflation we’re up against?

Few know the Fed as well as Nick Timiraos, economics correspondent for The Wall Street Journal. Nick has been tracking the Fed’s moves for years and has been our go-to correspondent on what Fed chair Jerome Powell could be announcing next. With inflation finally taking a hit and the economy slowing down, progress is finally being made. But this doesn’t mean that we’re out of the woods yet.

The Fed knows the job isn’t finished yet and is willing to push the American economy to extremes to get there. In this episode, we talk to Nick about the Fed’s next moves, mortgage rate predictions, how the housing market could reignite, recession forecasts, and the “immaculate disinflation” that could save our economy.

In This Episode We Cover:

Why the Fed is keeping mortgage rates high even as we see lower inflation

Consumer spending and why Americans are being more “cautious” with their money

Credit tightening and risks for businesses if interest rates don’t decline

Why job openings are falling and what this means for unemployment

2024 recession risks and what would have to happen for a “soft landing” to actualize

And So Much More!

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