Ep. 79 | Rates Rise After Warsh's First Meeting as Chair

Mortgage rates moved higher following Kevin Warsh's first meeting as Chairman of the Federal Reserve, though it would be difficult to place the blame solely on the new Fed chief. The market's attention quickly shifted to the Fed's updated rate projections, where nine of the nineteen policymakers now expect at least one rate hike this year, up from none just three months ago. Investors were clearly disappointed by the more hawkish outlook.Still, there was some encouraging news for the bond market. Warsh emphasized the Federal Reserve's commitment to price stability, a message that should resonate with bond investors who remain focused on inflation risks.Outside of monetary policy, the economic data was largely positive. Pending home sales posted their strongest monthly gain since September 2024, signaling renewed activity in the housing market, while retail sales came in well above expectations, suggesting consumers continue to spend despite ongoing economic uncertainties. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit wilmingtonmortgage.substack.com