Out of the Blue and into the Black with Michael Kantrowitz of Piper Sandler
RiskReversal Pod
00:00
The Fed's Decision to Stop Tightening Rates
When will the Fed start to care? Is it when bonds reach a certain level or is it when the stock market drops to a certain level, which this Fed put that's around? I'm talking about long rates. Initially, tightening always starts with long rates going up well before the Fed starts to tighten the short rate and that typically is why housing slows through mortgage rates. The longest time in history of rising interest rates and falling PMIs, think of it as stag inflation, we're tightening into a downturn,. That was in 1968 through 1970, followed by a recession.
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