Economists' Outlook

Housing stats and analysis from NAR's research experts.

Instant Reaction: Fed Decision, June 14, 2023

A monetary policy lag time exists between decision and inflation. The rate hikes from earlier months have yet to exert their force at a time when inflation has already decelerated to 4%. There is no need to consider raising interest rates. In fact, considering the balance sheet difficulties faced by community banks and the weakness in the commercial real estate sector, the Fed should look at cutting interest rates before the end of the year. The Fed should look forward, not backward.