📰💥 12/14 Federal Reserve Meeting

Lets make sense of today's Federal Reserve meeting. So The Fed hiked 50 basis points, but that's no surprise. That's exactly what everybody was expecting. If it was more or less, then that would cause an uproar in the markets. So really the big takeaway is what did Federal Reserve Chair Jerome Powell say and what was his stance on the current economy? Well, he did have a huge announcement and he says he thinks inflation is going to have a major decrease in 2023. It's the first time those words have come out of his mouth in ages. So he huge shifting of the tide. It kind of goes hand in hand with the last two inflation reports. I mean, the proof is there now. The Fed's noticing it and starting to kind of change their stance. They're softening a little bit and they feel like these rate hikes have started to start to work and calm down inflation, just as the last two reports have shown. But he did mention we're not quite in the clear yet. It could be another month or two or three where things are kind of stagnant before we really see a decrease in inflation. But he can see that the signs are there for it to start working. The last thing they're waiting to the last shoe to drop is they want to see the hourly earnings things come back down for the average employee. Across the country with inflation going crazy, employers are paying more and more and more to all their employees. People had more cash in their pockets and from the stimulus money from a couple years back and they were able to spend more and more and more on goods and services causing inflation to happen. So they want to continue to raise their federal funds rate. Employers have to pay their employees a little bit less or they can't keep giving pay raises. And that'll be the last shoe to drop to calm things back down and get the economy back on the right track. So be on the lookout. Mortgage rates are aren't fixed overnight, but we are headed in a much better direction.