November 7, 2024
Fortune recently published an article featuring Mark Williams, Master Lecturer of Finance, discussing the Federal Reserve announcing a second interest rate cut, shortly after the U.S. presidential election.
Driven by strong employment data and inflation returning to target levels, analysts predicted a 25-basis point cut following a 50-basis point reduction in September. Despite the rate cut, consumers may not see relief in the housing market. The 10-year Treasury yield has surged to nearly 4.5% following the election. The increase is pushing up mortgage rates, making borrowing more costly and likely reducing home sales.
“Unfortunately consumers will not feel needed relief as the yield on the bellwether 10-year treasury, post-election, has leaped to almost 4.5%,” Williams adds.
While inflation has decreased, price levels remain high, which is a key concern for households as Trump inherits a mixed economy.