Part 3/6:
LaVorgna spoke with optimism regarding the anticipated passage of significant legislation dubbed "the one big, beautiful bill." He argued that this bill is expected to significantly incentivize foreign investment, which in turn would help to lower inflation rates. With the supply-side components of the economy expanding, LaVorgna believes that market-determined rates will subsequently decrease.
His remarks hint at a potential economic scenario where strong growth coexists with low inflation, reminiscent of trends observed during Trump's first term. As mortgage rates are traditionally tied to the 10-year Treasury yield, any downward movement in these foundational rates is likely to positively influence the housing market and other sectors.