BiggerPockets Real Estate Podcast

BiggerNews: The Fed Is Finally Ready to Cut Rates, but How Low Will They Go? w/WSJ’s Nick Timiraos

Sep 13, 2024

Nick Timiraos, the chief economics correspondent for the Wall Street Journal, joins to dissect impending decisions from the Federal Reserve. He breaks down the critical nature of the upcoming meeting and debates whether a 0.25% or 0.50% rate cut is in the cards given the struggling job market. The conversation dives into how these cuts could impact home prices and the broader economy. Timiraos shares insights on the Fed's thought processes and hints at more rate cuts than previously thought for 2024, making this a must-listen for real estate investors.

42:14

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Episode guests

Nick Timiraos

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Episode notes

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Quick takeaways

The upcoming Federal Reserve meeting is crucial for real estate investors as decisions made could significantly impact interest rates and market dynamics.

Rising unemployment presents a complex challenge for the Fed, influencing the urgency and magnitude of potential rate cuts to avert an economic downturn.

Deep dives

Current Economic Landscape

As of fall 2024, the economy is at a critical juncture, with inflation decreasing while unemployment rates are on the rise. The Federal Reserve is under scrutiny as expectations mount regarding potential interest rate cuts in response to these shifts. The upcoming Fed meeting is particularly significant as it will address the extent of these cuts, potentially affecting not just economic policy but also real estate investments profoundly. Investors in real estate, one of the most interest rate-sensitive sectors, must closely monitor the Fed's decisions to navigate their strategies effectively.

Intro

4min

Anticipating Interest Rate Cuts

8min

Exploring Federal Reserve Decisions and Their Economic Impacts

4min

Interest Rates and Economic Impacts

8min

Interest Rates and Labor Market Insights

5min

Navigating Post-Pandemic Economics

9min

Navigating the Fed's Rate Cuts and Economic Uncertainties

3min

The next Fed meeting is crucial for real estate investors and the economy. So, what will the Fed do? Are we getting the 0.25% rate cut that many experts predict, or will a 0.50% rate cut come due to further weakening of the economy? The job market is already struggling, and the Fed needs to make a move—fast. The question is: will whatever they do next be enough to stop us from falling into a high-unemployment economy? We’re getting into it in this BiggerNews!

We brought in the chief economics correspondent for The Wall Street Journal, Nick Timiraos, to give us the latest update on the Fed, what could happen in September’s Fed meeting, and what’s in store for rate cuts. Nick agrees that this meeting is more crucial than most and that the decisions made could significantly impact the economy and real estate.

How many rate cuts will we get this year? How big will the rate cuts be? And who’s deciding these rate-cut decisions in the first place? Nick knows the Fed better than almost anyone and shares exactly what they’re thinking and where they believe rates are headed in today’s episode.

In This Episode We Cover:

2024 Fed rate cuts and how big the first one could be at the next Fed meeting

Why rising unemployment is putting even more pressure on the Fed to make a move

Whether or not home prices could shoot back up once mortgage rates fall

How many rate cuts is the Fed expecting to make in 2024 (more than we thought before!)

The “signal” that the Fed is sending with their decision in the next Fed meeting

And So Much More!

Links from the Show

Invest in Turnkey Properties with REI Nation

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