Federal Reserve Chairman Expresses Concern

June 30, 2020
Fed logo
The Fed has pushed rates to all-time lows and the chairman's statements could continue the trend.


Federal Reserve Chairman Jerome Powell has been out there again sounding the alarm about the potential for further damage to the economy from the coronavirus pandemic. In his recent remarks, he worried aloud about the possibility of a second round of infections — which he said could bring a longer and more feeble recovery. The Fed's words and actions have been helping to push rates on home loans to one new all-time low after another, and the chairman's statements could keep rates heading downward. That would mean even better deals for borrowers buying homes and for homeowners looking to mow down their monthly payments by refinancing. "A full recovery of the economy will really depend on people being confident that it’s safe to go out," the chairman said, during a Princeton University webinar -- "A second wave would really undermine public confidence, and might make for a significantly longer recovery, and weaker recovery." The ongoing fears about the economy have had investors flocking into Treasury bonds as a safe place for their money. Bond prices have been rising, bond interest has been falling, and mortgage rates have gone along for the downhill ride.

Source: Yahoo Finance