HousingWire Daily The Fed cuts rates, but sets job growth expectation to zero
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Sep 18, 2025 
Logan Mohtashami, a lead analyst known for his expertise in housing and mortgage markets, joins the discussion to unpack the Federal Reserve's recent interest rate cut. He highlights the Fed's cautious stance on job growth, signaling a target of zero job expansion amid a softening labor market. Logan also shares insights on how this cuts affect housing signals, noting early recovery signs as mortgage rates edge closer to 6%. Tune in for an engaging analysis of the intersection between monetary policy and the housing market!
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Fed's Cut Was A Cautious Risk-Manager Move
- Jerome Powell framed the cut as a cautious, risk-manager move rather than a pivot to dovish policy.
- The Fed acknowledged labor softening but still signaled only a return toward neutral policy, not accommodation.
Powell's Words Dented Initial Bond Euphoria
- Powell's press conference language reversed some initial bond-market optimism and pushed yields back up.
- Market pricing already embedded much of the Fed action, so data will drive the next moves.
Don't Panic Over Fed-Day Yield Volatility
- Stop overreacting to intraday 10-year yield moves on Fed days and focus on economic data instead.
- Watch jobless claims and retail sales rather than short-term yield swings for clearer signals.