Part 3/9:
The Federal Reserve's ability to manipulate rates and control the overall yield curve has diminished. As interest rates have consistently risen since 2020, the relationship between the Federal Reserve's actions and the resulting economic environment has become increasingly complex. In the past, lowering the federal funds rate could lead to decreased interest rates across the board, including mortgages. Now, the opposite may occur, whereby lowering the federal funds rate exacerbates inflation and leads to higher overall borrowing costs.