The Fed Finally Cuts Rates, but Will It Even Matter? w/NYT’s Jeanna Smialek

The Fed’s recent rate cut signaled something clear about the US economy, but what are they trying to say? With a bolder rate cut than many of us expected, homebuyers, business owners, and real estate investors are seeing the light at the end of the high-rate tunnel, where borrowing money and buying houses could come at a lower cost. But with markets already anticipating a rate cut, did the recent cut even really matter?
Today, Federal Reserve reporter from The New York Times, Jeanna Smialek, shares her thoughts on what the Fed move meant after studying them full-time for over a decade. Jeanna believes that the Fed feels confident, even if this recent rate cut was overdue. Inflation has seen a substantial dropoff, but on the other hand, unemployment is rising, and Americans are getting nervous. Did the Fed move fast enough?
Jeanna also shares the future rate cuts we can expect from the Fed, with more potentially coming this year and a sizable series of cuts already lined up for 2025. How significant will the cuts be, and will they be enough to stop unemployment from getting out of control? How will rent prices and home prices move due to more rate cuts? We’re answering it all in this episode!

In This Episode We Cover
The Fed’s recent 0.50% rate cut explained and their forecast for 2025 rate cuts
The signal the Fed is sending by making a bigger rate cut (and preparing for more to come)
Why the Fed decided NOW was the time to finally cut rates (and whether it was too late)
Inflation updates and good news for the slowing of growing prices
Housing affordability and whether or not these rate cuts will help homebuyers/renters
And So Much More!
Links from the Show
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See Dave at BPCON2024 in Cancun!
Dave's BiggerPockets Profile
Federal Reserve Cuts Rates By 0.50%, a Bigger Cut Than Expected
Read More from Jeanna
Get Jeanna’s Book, Limitless: The Federal Reserve Takes on a New Age of Crisis
Grab Dave’s Newest Book, “Start with Strategy”


Jump to topic:
00:00 Intro
01:40 The Fed Makes a BIG Move
05:31 Why Now?
07:40 Effects of a 0.50% Rate Cut 
12:16 Inflation Trends 
15:07 Will Home and Rent Prices Rise? 
22:42 2025 Rate Cuts
27:20 How the Fed Has Changed

Check out more resources from this show on BiggerPockets.com and  https://www.biggerpockets.com/blog/on-the-market-255
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