Afford Anything LIVESTREAM: A Former Fed Economist Reveals What's Really Happening, with Karsten Jeske (“Big ERN”)
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Sep 16, 2025 Karsten Jeske, a former Federal Reserve economist and founder of Early Retirement Now, offers a riveting insider's view on the economy. He shares anecdotes from his time at the Fed and explains the upcoming interest rate cuts despite rising inflation. Jeske reveals how high rates can paradoxically lead to housing inflation, urging listeners to act quickly if considering real estate moves. He also discusses the concept of 'procrastisaving' and highlights the importance of understanding economic indicators in navigating personal finance.
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Markets Already Priced In Several Cuts
- The bond market had already priced in multiple rate cuts, not just the September cut, creating elevated expectations.
- That pricing could reverse if the Fed's language or Powell's tone proves less dovish than markets expect.
Shop Mortgages Before The Fed Announcement
- Karsten advises shopping for a mortgage now because bond markets have largely priced in expected Fed cuts and the announcement could reduce optimism.
- He warns that acting before the Fed's press conference avoids potential haircuts if Powell sounds hawkish.
Use Fed Signals To Time Decisions
- Expect the Fed to signal its likely path rather than cut once and stop; plan decisions around that forward guidance.
- Use the Fed's communications as a timing tool because policy normally avoids surprise stop-and-go moves.