Melissa Cohn of William Raveis Mortgage believes the Federal Reserve will maintain its current stance but may adjust future rate expectations. Recent drops in Treasury yields indicate a fear of recession, reflected in a CNBC survey reporting a 36% chance of recession in 2023. There are concerns that economic uncertainty could undermine housing recovery. Conflicting economic indicators, such as strong GDP and employment versus uncertain consumer sentiment, may lead Fed policymakers to take a cautious approach moving forward, especially with geopolitical tensions and inflation plateauing.
Melissa Cohn anticipates the Fed's stability but hints at surprises in future rate expectations, especially if the dot plot indicates more significant rate cuts.
Experts highlight the mixed economic signals, suggesting the path to lower rates remains complicated amidst GDP strength and uncertainty in consumer sentiment.
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