(Bloomberg) — The Federal Reserve’s expected rate cuts this week won’t provide much relief to homebuyers facing high borrowing costs, according to Gary Cohn, who served as chief economic adviser to former President Donald Trump.
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“Unfortunately, I think those rates have already priced in what the Fed is going to do,” Cohn said Sunday on CBS’s Face the Nation. “I do not see a major impact to the mortgage market or credit-card financing or anything else by the Fed starting to drop rates this week.”
Policymakers are widely predicted to begin easing rates in their September meeting, as the US economy begins showing signs of weakness.
Measures of inflation have cooled, but home prices are still more than many Americans can afford, especially with high borrowing costs. The average for a 30-year, fixed loan is currently 6.2%, down from 6.35% a week…
