On today’s episode, Lead Analyst Logan Mohtashami talks about Kevin Warsh’s first Fed meeting as chairman and what his comments mean for mortgage rates. Related to this episode: Warsh era at the Fed begins with rate pause amid spiking inflation HousingWire | YouTube⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ More info about HousingWire Want more from Sarah? Don&#x27;t forget to subscribe! The HousingWire Daily podcast brings the full picture of the most compelling stories in the housing market reported across HousingWire. Each morning, listen to editor in chief Sarah Wheeler talk to leading industry voices and get a deeper look behind the scenes of the top mortgage and real estate.

Warsh talks about housing, but inflation is the problem

HousingWire Daily 

# Full Transcript

**Podcast:** HousingWire Daily

## Participants

- **Logan Mohtashami** (HousingWire)

## Transcript

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Hello, everyone. My name is Logan Mohtashami, lead analyst for HousingWire. We have a special event today. Sarah Wheeler is not with us, so we're going to have some fun. We just got off the Fed Press, sir. Today, Kevin Warsh's first Fed Press meeting. A lot of interesting things to talk about. Just remember, with HousingWire, we break all the news daily. If you go to the HousingWire website, you can get the latest updates, especially the pending home sales data that I just wrote about as well.

Not shocking to all of you that have listened to our podcast that pending home sales did beat estimates and showing almost 5% year-over-year growth. But let's get to the big picture. Kevin Warsh's first Fed event, and a lot of things are going to change, but we're going to start off by saying for the first time ever, Powell never really did this in the last few years, but it was somewhat of a pro kind of housing tip.

He tipped his hat off. When they talked about, is monetary policy too tight? They mentioned stock markets at highs, GDP still growing, job growth is still there. Kevin Warsh twice kind of hinted that when I look at policy, it's uneven. The housing market, based on the data, policy is too restrictive. That's kind of how I read it.

For everything else, not so much. So the unevenness, that term that he used is similar to what he talked about many, many months ago. And this is why it was said for housing specific, Kevin Warsh is much better than Jerome Powell, because he talked about, well, housing's been in a recession and policy's too restrictive in that regard.

That is basically him tipping his hat and acknowledging the obvious. Where Jerome Powell, when they asked him this question, if you go back and listen, you'd go, well, even it doesn't matter what we do, there's still going to be a shortage of housing in America. That's not the answer you want a Fed chairman to say like, come on, homies, that's the best you have. You have all these staffers and everything. That's the answer you get for housing.

In any case, for realtors and loan officers, that was a positive statement because that is something that he wanted to get across on the first day. A lot of things are going to change the dot plots and forward guidance. Forward guidance is over. This is where I agree with Kevin Warsh. I've not been a fan of the dot plots. I've not been a fan of Powell talking too much and people misinterpr...

Warsh talks about housing, but inflation is the problem

Transcript

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Warsh talks about housing, but inflation is the problem

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.