The Federal Reserve – and new chair Kevin Warsh – may have just marked the end of an era for the U.S. housing market and financial markets in 2026.
For more than twenty years, investors became accustomed to the Federal Reserve stepping in whenever markets weakened. The early 2000s, the post-2008 recovery, and the pandemic all featured historically easy monetary policy, near-zero interest rates, and massive liquidity. Those policies fueled enormous gains in real estate, stocks, Bitcoin, gold, and other assets.
Many people believed new Fed Chair Kevin Warsh would continue that tradition by quickly cutting interest rates. Home buyers stretched for expensive houses expecting lower mortgage rates. Investors poured money into stocks, cryptocurrencies, gold, and silver anticipating another easing cycle. Instead, Warsh is signaling something very different: inflation comes first, even if that means higher-for-longer interest rates and continued pressure on asset prices.
In this video, we break down:
-Why the Federal Reserve may be entering a new policy regime
-What the latest FOMC meeting and dot plot reveal
-Why the Fed Funds Rate has fallen from 5.3% to 3.6% while mortgage rates remain elevated
-What this means for Zillow Home Values, home buyers, and real estate investors
-Whether higher-for-longer interest rates could pressure housing and other asset prices through 2026
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