S2025 Ep310: The Rate Update —Here's Why the Fed Can't Cut Rates (Yet)

About this episode

This episode discusses why the Federal Reserve cannot cut rates yet despite cooling inflation and its implications for homebuyers and homeowners.

The Rate Update — Here's Why the Fed Can't Cut Rates (Yet) The Federal Reserve meets today — and the big question for homeowners and homebuyers is simple: Why can’t the Fed cut rates yet? Even if inflation is cooling in some areas, the Fed still has a problem. Core inflation, mortgage rates, Treasury yields, oil prices, jobs data, and market expectations all matter. And today may be especially important because this could be one of Jerome Powell’s final Fed meetings as Chair. In this episode, we break down what the Fed is likely to do, what Powell may say after the meeting, why the market may move more on his press conference than the rate decision itself, and what it could mean for mortgage rates, homebuyers, homeowners, and anyone trying to decide whether to lock, float, buy, wait, or refinance. Today’s key question: 👉 If inflation is cooling, why won’t the Fed cut rates yet? We’ll look at: • The Federal Reserve decision • Why Powell’s press conference matters • Inflation excluding food and energy • Mortgage rates and Treasury yields • Why the Fed may stay cautious • What homebuyers should watch next • Why rate cuts do not automatically mean lower mortgage rates • What this…

People in this episode

Host: Dan Frio

Topics covered

• Federal Reserve
• mortgage rates
• inflation
• homebuyers
• economic outlook

Keywords

• Federal Reserve
• mortgage rates
• inflation
• Jerome Powell
• economic data

Mentioned in this episode

Organizations: Federal Reserve, Treasury

Places: United States

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