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August 26, 2022 | The Fed: Cold Shower on the Way

Robert Campbell

Robert Campbell is a real estate analyst and economist. He's been publishing The Campbell Real Estate Timing Letter since 2002. His book (Timing the Real Estate Market) presents a clearly defined method for predicting the peaks and valleys of real estate cycles.

Fed Chairman Jerome Powell gave a hawkish speech today about how the Fed was going to do whatever it takes to get inflation back to 2%.

How will this change in Fed monetary policy impact housing prices?

If the Fed keeps its word in its commitment to bring inflation down to 2% (it’s 8.5% now), the actions the Fed needs to take will almost surely result in the following:


  • the economy is going to get pounded;
  • the jobless rate is going to rise;
  • mortgage rates are going to spike higher – and possibly way higher;
  • housing prices are going to get creamed – especially in CA.


No good thing lasts forever folks – and as I frequently point out in my Timing Letters, the hangover is usually proportional to the binge.

Adjust, adjust, adjust has always been the way to survive in the markets – and it seems the ever-present battle for investment survival is now about to get even more intense. 

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