Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

“Inflation has now been joined by financial stability concerns as threats to sustained growth,” said Doug Duncan, Senior Vice President and Chief Economist, Fannie Mae. “These particular pre-recessionary conditions are not unusual, as bank failures often follow monetary tightening – but this may well be the catalyst for the modest recession we’ve been expecting since April 2022.”

Duncan continued: “While housing writ large has responded to the Fed’s monetary tightening in a relatively predictable fashion, the rapid uptick in home sales in response to modest rate declines earlier this year corroborates our long-standing expectation that the housing sector will help moderate any future recession due to the significant pent-up demand.”

https://www.fanniemae.com/newsroom/fannie-mae-news/banking-system-instability-may-prove-catalyst-recession