BiggerNews: The Fed Is Finally Ready to Cut Rates, but How Low Will They Go? w/WSJ’s Nick Timiraos

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 13 September 2024

⏱️ 41 minutes

🔗️ Recording | iTunes | RSS

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Summary

The next Fed meeting is crucial for real estate investors and the economy. So, what will the Fed do? Are we getting the 0.25% rate cut that many experts predict, or will a 0.50% rate cut come due to further weakening of the economy? The job market is already struggling, and the Fed needs to make a move—fast. The question is: will whatever they do next be enough to stop us from falling into a high-unemployment economy? We’re getting into it in this BiggerNews! We brought in the chief economics correspondent for The Wall Street Journal, Nick Timiraos, to give us the latest update on the Fed, what could happen in September’s Fed meeting, and what’s in store for rate cuts. Nick agrees that this meeting is more crucial than most and that the decisions made could significantly impact the economy and real estate. How many rate cuts will we get this year? How big will the rate cuts be? And who’s deciding these rate-cut decisions in the first place? Nick knows the Fed better than almost anyone and shares exactly what they’re thinking and where they believe rates are headed in today’s episode. In This Episode We Cover: 2024 Fed rate cuts and how big the first one could be at the next Fed meeting Why rising unemployment is putting even more pressure on the Fed to make a move Whether or not home prices could shoot back up once mortgage rates fall How many rate cuts is the Fed expecting to make in 2024 (more than we thought before!) The “signal” that the Fed is sending with their decision in the next Fed meeting And So Much More! Links from the Show Invest in Turnkey Properties with REI Nation Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Try Baselane, the One Platform for All Your Property Banking & Finances Thrive in Any Market with “Recession-Proof Real Estate Investing” Find Investor-Friendly Lenders See Dave at BPCON2024 in Cancun! The Fed Is Planning to Cut Rates Soon. Here’s How Investors Should Prepare Learn More from Nick Connect with Dave (00:00) Intro (02:10) The Fed Explained (03:59) September's Crucial Fed Meeting (07:05) Who Decides the Rates? (13:23) 0.25% or 0.50% Rate Cut? (17:27) Risks to Real Estate (23:30) Unemployment is Rising (29:33) Rate Cut Predictions Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1017 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	We're at a key inflection point with the economy right now as we enter the fall of 2024.
0:06.0	Inflation is starting to come down, but unemployment is rising at the same point.
0:12.0	And as a result, all eyes are on the Federal Reserve and
0:15.0	whether they're going to actually start to cut interest rates. And this topic
0:20.2	about what the Fed is going to do is really important for real estate investors and as such we have a great guest Wall Street Journal chief economics correspondent Nick Timmerouse joining us today to help us understand what is going on with the Fed
0:35.8	and I'm excited for this because Nick is honestly one of the best in the business at
0:40.7	making sense of the Fed behavior and also at interpreting what it all
0:45.7	means for regular people and for real estate investors like us. Hey everyone happy Friday Dave here. We've got a great bigger news show for you today.
1:00.1	We're going to be previewing next week's Fed meeting, which begin on Tuesday, September 17th.
1:07.1	And at these upcoming meetings, the Fed is widely expected to announce a cut to the federal funds rate and that is pretty well known.
1:15.4	But what's not known is how much they're going to cut rates or how fast they're going to do it
1:19.8	at the next meeting into next year and well into the future.
1:23.9	And we don't know what their strategy is
1:26.4	to successfully avoid a recession.
1:29.2	So today we're gonna get into all that with Nick.
1:32.3	I'm gonna ask him why this particular Fed meeting just
1:35.2	feels really important compared to all the other ones that we have during the course of
1:39.6	the year. We're going to talk about different policies and some of the politics that go into the different factions within the Fed,
1:46.0	and of course we're going to talk about what this all means for the housing market.
1:51.0	I'm super excited about this conversation because real estate is one of the most
1:55.3	interest rate sensitive industries maybe it is the most interest rate sensitive
2:00.2	industry in the entire economy and so as investors and people who operate in the space
	...

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