On The Market Fed Close to Cutting Rates: Could Tariffs Derail the Plan?
5 snips
Jul 7, 2025 The discussion kicks off with the Fed's cautious stance on rate cuts and the impact of tariffs on interest rates. Amid fluctuating economic conditions, the challenges faced by real estate investors are explored, with a focus on stability and confidence. The influence of recent political events in New York on Florida's real estate market is examined, as well as unique insights on insurance for landlords. Notably, disparities in home price growth between cash buyers and those relying on financing highlight the widening wealth gap.
AI Snips
Chapters
Transcript
Episode notes
Fed wary because of tariffs
- The Fed is cautious to cut rates now due to potential inflation from tariffs.
- This caution indicates the Fed already sees some labor market weakness.
Risks of Trump’s rate cut push
- Trump wants interest rates cut to 1-2%, but the Fed doesn't directly follow presidential wishes.
- Cutting rates too low now risks inflation and losing tools to combat future recessions.
Rent controls may worsen affordability
- New York mayoral candidate Mamdani’s policies on rent control may reduce investments and worsen housing quality.
- Rent freezes can help existing tenants but often hurt overall affordability due to supply reduction.