14 November 2023
Core inflation has cooled to 4%, but it’s still double the Fed’s target rate. While this indicates some progress, housing costs remain high, with shelter CPI up 6.7% YoY and transportation services up 9.2% YoY. Mortgage rates have surged 169% under Biden, yet the 10-year Treasury yield has dropped to 4.50%. Investors are anticipating significant rate cuts by the Fed in 2024, possibly to support the current administration in the upcoming election. The U.S. economy continues to be heavily influenced by the Federal Reserve’s policies.