News
Fed Is Set to Hold Rates Higher for Longer
On May 1, the Federal Reserve will conclude its next monetary policy meeting. With inflation progress stalling in recent quarters, the Fed is set to hold rates at their current, restrictive levels until further progress is made with key price metrics. The gradual erosion of market expectations of rate cuts for 2024 has led long-term interest rates to rise. For example, the 10-year Treasury rate (which reflects both long-term inflation expectations and near-term economic growth estimates) started the
Interest Rates to Remain Higher for Longer
Eye On Housing National Association Of Home Builders Discusses Economics And Housing PolicyInterest rates moved higher in recent weeks because of disappointing progress for inflation data and solid labor market reports. In fact, Fed Chairman Powell noted this week that there has been a “lack of further progress so far this year on returning to our 2% inflation goal.” These offsetting factors — higher interest rates on the negative side but supportive macro conditions — left builder sentiment flat in