Hello and welcome. My name is Gino Barbera, one of the co-founders of Jake and Gino.

And in this how-to video, I'm going to be discussing how does the rate drop by the Fed affect multifamily,

overall and the economy. So if you want to learn what that means to you personally and to business

overall, I want you to listen on.

The Fed made a big announcement last week. They dropped rates. Everyone was expecting a 25 basis

point cut. So it was sort of baked in, but we learned that it was actually 50 basis points that

they cut. Now, what does this mean? Right away, first thing that's going to happen

is the people are actually going to benefit from it or ones that have car loans, ones that have

personal lines of credit, ones that have, you know, credit card debt. They're going to feel their

pricing drop. They're going to see that, wow, my prices went down.

I'm paying less for the debt. Great. Everyone thinks that it's going to affect mortgages.

Well, that's already been baked in. They've already, the bond market already expected this rate drop.

And it's basically you're buying on the rumor. Rumors been out. Rates have been dropping. Now, what it does signal to me, though, is something, I don't know if it's basically you're buying on the rumor. Rumors been out. Rates have been dropping.

Now, what it does signal to me, though, is something, I don't know if it's troubling, if it's not

troubling. To me, I like to look back at history. I've been a little bit older than a lot of

you listening to this. And I've been through a few market cycles. And there's patterns.

And the problem is that most of us tend to forget history. And history

does repeat itself. The last time the Fed cut rates was back in 2020. They raised rates, I think

11 times. It's the quickest rate jump in history as far as the quickness that had happened. And people were

screaming and saying, why did it happen and how did it go up so quickly? They had to shock the

system because they realized that inflation wasn't transitory. So what happens when rates go up or

why does the Fed increase or raise the rates? The first thing we need to understand

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