Why federal interest rates likely won't drop anytime soon

The video discusses the impact of interest rates on big purchases, highlighting that Federal Reserve rate cuts do not directly translate to lower mortgage rates. It explains the connection between mortgage rates and the 10-year Treasury yield. The video also explores economic predictions under a Trump presidency, including potential inflation and fewer rate cuts. Finally, it examines Trump's possible influence on the Federal Reserve, noting his campaign promises for more involvement.

What is the primary factor influencing the 30-year mortgage rate, despite Federal Reserve interest rate cuts?

• The stock market performance

• Local bank policies

• The 10-year Treasury yield

• The Federal Reserve's decisions

What is Jerome Powell's current stance on the need for further interest rate cuts?

• He has not commented on the matter

• He believes immediate cuts are necessary

• He sees no urgent need for cuts

• He plans to increase rates

Which of the following is a potential economic impact of a Trump presidency mentioned in the transcript?

• Stronger international trade agreements

• Decreased inflation

• Higher tariffs and tax cuts

• Increased federal workforce

How have American presidents traditionally interacted with the Federal Reserve?

• They have allowed it to act independently

• They have frequently replaced its chair

• They have ignored its existence

• They have heavily influenced its decisions

What action has President-elect Trump threatened regarding the Federal Reserve?

• To merge it with another institution

• To fire the Federal Reserve chair

• To increase its budget

• To reduce its interest rates