re: I thought the Federal Reserve was not Political and Independent

quote:

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Anyone that claims interest rates should move lower and if they aren’t, the Fed are partisan hacks, is a dumbass partisan hack

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Anyone who doesn't recognize who Austin fricking Goolsbee (whatever spelling it is) is because they are so frothing at the mouth to make their quip is a fricking loon.

30 year fixed rates rose above 6% in Sept 2022, and peaked in October 2024 at 7.8%. The last time they lingered above 6% for any length of time was 2005 - 2008, which ended in a mortgage crisis and a banking crisis. I'm not saying the Fed should ease or start monetizing again, but the fact is that we have too much debt (public and private) to withstand even moderate interest rates now. If housing prices continue higher, we can withstand these mortgage rates for a while longer as the home values outpace the loan value. But if housing inflation does continue, home prices will soon far exceed consumer borrowing capacity unless wages keep up or mortgage rates drop. We're on the debt/wage inflation spiral.