01/16/2026
The latest buzz on a possible Fed cut is not good.
Current average rate on 30yr fixed is about 6.2%.
The economy is a bit too strong for the Fed to cut rates right now.
Inflation is still a major concern.
Many pundits are now saying no rate cut in the first half of 2026.
I think that is an extreme prediction.
The labor market is still in bad shape and another awful report on that may make the Fed change their course. It will be interesting to watch.
And of course there is now an investigation into Fed chief Powell and his term ends in May. At which time, Trump will be appointing a new chair and surely he will select one who is more willing to cut rates. Presidents always want the rates cut to stimulate the economy, regardless of the damage it might do.
This is just my opinion!
