The Fox News Rundown Business Rundown: The Fed's 'Hocus Pocus'
Sep 19, 2025
Nancy Tengler, CEO and CIO of Laffer Tengler Investments, shares her insights on the recent quarter-point interest rate cut by the Federal Reserve. She criticizes Fed Chairman Jerome Powell's credibility, arguing his decisions are 'often wrong.' Tengler discusses the implications for borrowers, the lack of expected mortgage rate drops, and concerns over high credit-card rates. She also touches on the potential stock market correction and how AI could reshape employment data. Her sharp analysis sheds light on the economic landscape amidst changing policies.
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Fed Cut Was Risk-Management Move
- The Fed cut rates 0.25% despite inflation above 2% and called it a "risk-management cut."
- Nancy Tengler argues the cut follows political pressure and signals further cuts are expected.
Fed Chair Credibility Questioned
- Tengler calls the Fed chairman's messaging "hocus pocus" and says he has credibility problems.
- She links that credibility gap to market volatility like the 10-year yield rising after the cut.
Don’t Count On Immediate Lower Mortgages
- Expect mortgage rates to stay elevated until the Fed delivers additional cuts.
- Watch for the Fed to stop quantitative tightening before meaningful mortgage relief appears.