What to Expect From the New Fed Chair Pick

The Weekly Recap

Good morning and happy Friday! The Fed left rates unchanged as expected after Wednesday’s meeting due to the “strength of the economy.“ The S&P has soared above 7,000 for the first time ever while gold and silver also continue to have historic rallies. NYC office amenities are getting out of hand, we’re expected to get hit with something called a ‘Bomb Cyclone’ this weekend bringing more snow and the most expensive 30 seconds in sports television just hit $10 million for a spot during the Super Bowl.

If you missed last weeks newsletter on How to Prepare For Your Home Search As A New Buyer, you can read that through the link.

What To Expect From the New Fed Chair Pick

Just this morning it was announced that Kevin Warsh would be nominated to replace Jerome Powell as head of the Federal Reserve. While Warsh is a former Fed Governor himself he has historically been know to be an inflation hawk, meaning he’s more concerned about rising inflation than anything else. Recent comments from him suggest that he has had an inverse approach to what his operational strategy has been and has been public in his sentiments that “rates should be significantly lower.”

While the head of the Federal Reserve does not and cannot singularly lower rates at any given time, the influence he is expected to have over the 12 person voting body of the Federal Open Market Committee (FOMC) who do vote on rate cuts can have positive effects on a lower rate environment moving through the second half of 2026. This week, the Fed elected to keep rates unchanged due to the strength of the economy and even with a tight labor market, unemployment rates still show the US at was is considered to be full employment.

With cheaper capital available, combined with an economy experiencing de-regulation and the steady decrease in housing prices, we may see issues of affordability start to dissipate over the next 18-24 months if the bullish beliefs of Warsh’s intentions to bring rate down. Powell’s current term ends in May of this year but that doesn’t mean he couldn’t stll be a voice within the Fed as any chairman can move into a governor position which he has still yet to indicate if he will do.

Taken together, this evolving leadership dynamic at the Fed reinforces an important theme for markets and housing alike: policy is shifting from restraint toward optionality. While nothing is guaranteed and timing is never linear, the combination of a resilient economy, moderating housing prices, and the growing possibility of a more accommodative rate environment creates a constructive backdrop as we look ahead. For buyers, sellers, and investors, the second half of 2026 will increasingly become about preparedness and positioning rather than hesitation.

Market Performance

Here are how some other indexes and asset classes have performed as of this morning’s opening bell.

NYC Market Update

Here is a view of NYC market activity over the past week.

Mortgage Rate Update

Mortgage rates remain near their lowest levels in three years, which is encouraging for potential homebuyers who have waited to enter the market for some time. Lower rates, combined with strong income growth, have led to a steady increase in purchase applications compared to last year. More homeowners refinancing their mortgages are also benefiting from these lower rates, as shown by the rise in refinance applications over the past year.

News You Can Use

• Fed Holds Interest Rates Steady As Window for Another Cut From Powell Is Closing Bloomberg

• Apartment Rents Drop to Lowest Levels in Four Years CNBC

• Fed Rate Pause Nudges Bond Investors Back Into Risk Reuters

• Fed Holds Key Interest Rate Steady As Economic View Improves CNBC

• S&P 500 Tops 7,000 for the First Time Ever Axios

• Gold Tops $5,000 and Silver Continues to Soar After Rally Yahoo Finance

• NYC Offices Are Getting Outrageous And Turning Into Playgrounds for Adults NY Post

• Five Top Tables: The Best Restaurants in NYC Right Now Bloomberg

• Super Bowl Ad Rate Hits $10 Million for a 30 Second Spot Bloomberg

• Bomb Cyclone Set to Hit NYC this Weekend NY Post

The Deep Insight

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