He returned to the topic later in the Oval Office when asked about the post. “What I’m saying, very simply, is that we should be paying the lowest interest rate in the world,” he said.
But there seems little chance that the central bank will bring rates lower in its September decision, with market expectations indicating a hike is becoming more likely after the stronger-than-expected jobs numbers.
Warsh, who succeeded Jerome Powell as Fed chair this year, has expressed concern over the inflation outlook and hinted in his August address at Jackson Hole that a rate increase could be ahead.
Upward pressure on mortgage rates continues
Mortgage rates, meanwhile, have been on an upward trend in recent months as financial market jitters over the war in Iran and potential for an inflation upsurge sent bond yields higher.
This week, the average 30-year fixed mortgage rate climbed to 6.71%, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS), marking its highest level for over a year.
