The markets have been especially anxious about a looming recession and the Fed’s promises of higher rates. Powell made clear that Fed officials are not seeing anywhere near the kind of progress necessary to say its policies are taking hold. But the housing market, which is particularly sensitive to higher rates, may be a sign that its moves are starting to work. Mortgage rates have escalated in recent months, and Wednesday’s announcement could mean even higher mortgage rates in the coming weeks. Fed projections are often wrong, and any estimates tend to be a subpar match for the uncertainty of the coronavirus era.

Source: Washington Post September 22, 2022 01:53 UTC