The recent FOMC meeting revealed that while the Federal Reserve anticipates at least two interest rate cuts this year, expectations for GDP growth in 2025 have been downgraded from 2.1% to 1.7%. Inflation forecasts have risen slightly, with the PCE index now expected at 2.7%. Fed Chair Jerome Powell emphasized the uncertain economic landscape, suggesting that while policy is in a good place, further clarity is needed before significant changes occur, leaving housing professionals anxious amid declining mortgage origination volumes.
The Fed maintains that policy is well-positioned, indicating room for two interest rate cuts this year amidst ongoing uncertainties in economic forecasts.
Fed's forecasts reflect high uncertainty, with GDP growth for 2025 reduced and inflation expectations slightly raised, which may concern housing professionals.
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