THE FED JUST CRASHED THE MARKET | Major Changes Explained

Federal Reserve's impact on housing market is significant.

Rate hikes are destabilizing home sales, impacting global currencies, and potentially leading to a global recession.

Real estate market faces challenges with rising mortgage rates.

Mortgage rates have tripled, leading to declining home sales and reduced purchasing power for buyers.

Stock market experiences significant losses amid economic concerns.

US net worth dropped by $7.7 trillion due to declining stock values, with indexes down 20-25%.

Federal Reserve's cautious approach to rate hikes explained.

Acknowledging lags in policy effects allows for measured adjustments to prevent economic disasters.

Savers benefit from higher interest rates.

Increased rates allow banks to offer higher returns on deposits, benefiting savers with attractive savings rates.

Fixed rate loan holders benefit from stable payments.

Fixed rate loans shield borrowers from interest rate hikes, maintaining stable payments unaffected by Federal Reserve decisions.

Federal Reserve's potential pivot signals market shifts.

Anticipation of a pivot indicates a transition to a more market-friendly stance, impacting investment strategies.