This podcast episode delves into the complexities of the current housing market and monetary policy, focusing on how lower mortgage rates impact homeowners and the economy at large. The hosts explore the concept of the "neutral rate," or "R-star," which serves as a benchmark for economic stimulation, and the ongoing debate surrounding its accurate calculation. They conclude with a discussion on the Fed's optimistic outlook on inflation post-pandemic, while humorously acknowledging the unpredictable nature of the economy, epitomized by the metaphor of the "R-star Sasquatch."
