“The market for 2023 will be weak until then,” Dietz said. “Home prices will remain high and supply will be low.”
After news of the rate hike, it’s a great time to revisit what the Federal Reserve system is.
We often associate the Fed with Powell and the building located in Washington, D.C., but the Fed extends well beyond that. There are 12 regional banks located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco. Each bank has its own president.
There are 12 people responsible for deciding what to do with interest rates at every Fed meeting. Seven seats are filled by the Federal Reserve’s Board of Governors, which includes Chairman Powell and six other people who were nominated by the president and confirmed by the senate. The New York Fed president casts a vote on interest rates at every meeting. The remaining four votes come from a rotating cast of the other regional bank leaders.
— Elisabeth Buchwald
While two consecutive GDP contractions in the first two quarters this year met an informal benchmark for recession, the National Bureau of Economic Research looks at a broader range of economic activity, including employment, retail sales and industrial production, before determining when a downturn begins and ends. NBER is a non-profit, non-partisan organization that frequently publishes economic research. Within NBER is a team of eight economists tasked with determining when recessions occur.
