“I would expect a lower-for-longer interest rate expectation to be bullish for home prices since mortgage rates would remain well below historical levels,” FBB’s Bailey said.
“There's a lot of thought that Powell has overshot on inflation, and he’s going to be dovish on inflation, but I think he’s a market participant unlike an economist, and he’s been through these cycles and I think that matters,” said Kim Forrest, chief investment officer at Bokeh Capital Partners. “As an investor that invests for other people, I’m very happy that they continued with Powell.”
“If Powell means more continuity and less uncertainty, everyday investors may feel less risk aversion as they consider putting more money away in the stock market for retirement savings,” said FBB’s Bailey.