Economic Insights: August 2024 — Dr. Marci Rossell | Ep. 89

Welcome to another installment of Economic Insights, brought to you by the Miami Real Estate Podcast! This month, our correspondent Jessica Edgerton from Leading Real Estate Companies of the World®️ brings us the latest analysis from their Chief Economist, Dr. Marci Rossell. Tune in as Jessica shares Dr. Rossell's top 5 takeaways for August 2024.

Japan’s Economic Shockwaves: The Bank of Japan's surprise rate hike created global market volatility, particularly affecting the "carry trade" strategy. Despite this, Dr. Rossell believes it is unlikely to trigger a global or U.S. recession.

U.S. Federal Reserve Rate Cut Expectations: With inflation at 2.9% — the lowest since 2021 — a rate cut is expected in September, and another after the November election. Mortgage rates could stabilize around 5.5%.

Mortgage Rate Fluctuations: Mortgage rates have increased slightly, but as they approach 5.5%, refinancing risks diminish, potentially bringing stability by year-end.

No Evidence of U.S. Economic Slowdown: Despite high prices, consumer spending and job growth remain strong, with GDP growth projected at 2.9%. Dr. Rossell sees no signs of a U.S. recession.

Global Economic Outlook: Japan's economic changes have affected countries with overvalued currencies, but as the U.S. Federal Reserve lowers rates, emerging markets like Mexico and Brazil could benefit from increased investment.

 

Guest: Dr. Marci Rossell

Host: Jessica Edgerton

Producer: Omar De Windt, Veronica Paris