From the Source: Servicing Insights as Fed Remains in Wait-and-See Mode
Fed Chair Jerome Powell’s remarks left the mortgage industry searching for insights after the FOMC’s recent decision to hold rates steady. So, HousingWire asked Sagent CEO Geno Paluso for his thoughts, and he characterized the balance between controlling inflation and supporting the jobs market as “tough.” Read on for Geno’s complete quote, then check out the full piece here on HousingWire for the bigger picture.
Geno Paluso, CEO at mortgage servicing technology firm Sagent, said that the Fed’s dual mandate involves a tough balance between controlling inflation with higher rates and supporting the job market with lower rates.
“The White House will keep rate cut pressure on the Fed to preempt recession, while the Fed tries to hold rates steady for trade war inflation signals,” Paluso said.
In the housing market, Paluso explained that while a recession would help stable homeowners refi their loans through lower rates, it would also cause hardships for homeowners who could sustain job or income losses. Likewise, a tariff-driven inflation spike may also cause homeowner hardships, he added.
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