Paul: mortgage rates jump to the highest level in 20 years helping dr. mortgage applications to 3 decade low as borrowing costs surge and existing home sales tumbled, one of the many worries on wall street and main street as long-term interest rates rise. fed chairman jerome powell signaling interest rate increases could be coming. jason triggered is chairman and ceo of investment strategy firm. good to see you. why are long rates popping now? is it that investors here there is going to be more spending in government and more inflation or is it because they look at economic growth and it is higher than people estimate?
So much of this was built into what we expected. fed chair powell signaling over the last month, what he was going to do. unanimously, the federal reserve voted to do it, the raise interest rates a half opoint. looking ahead, that s where the key components of this inflation situation are, we do expect more half point increases in the next few months over the next few hikes. he s taken off the table in the press conference the idea of a three-quarter point hike, saying that that might be a little bit too much and could then trigger some of these fears that people have about a possible recession. he did acknowledge that raising rates, reducing inflation and avoiding a recession is going to be very challenging. what s interesting here is fed care powell saying this is a strong economy. he says nothing suggests close to or vulnerable to a recession. but a lot of economists disagree with that at this point.