Is the FED Cook’d? A look at rate cuts, political pressure, and market reactions.

In this episode, the Optimal Insights team dives into the latest market dynamics, including the upcoming unemployment report, inflation trends, and the growing political pressure on the Federal Reserve. The conversation explores the implications of Lisa Cook’s legal battle, potential Fed rate cuts, and the broader economic signals potentially pointing toward stagflation. The team also discusses how immigration and labor market shifts are influencing employment data and what it means for mortgage rates and housing affordability.

Notable Insights:

• The Fed may face increasing political pressure, potentially compromising its independence.
• Inflation remains above target, but markets are pricing in rate cuts.
• Labor market data may be misleading due to immigration shifts and marginal employment.
• Lower rates could boost affordability but may also drive inflation and reduce real buying power.

Optimal Insights Team:

• Jim Glennon, Vice President of Hedging and Trading Client Services
• Jeff McCarty, Vice President of Hedging and Trading Product
• James Cahill, MSR Account Manager
• Alex Hebner, Hedge Account Manager

• Executive Producer: Sara Holtz
• Producers: Matt Gilhooly & Hailey Røise

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Keywords: Real-time data insights, Capital markets commentary, Mortgage industry, Profitability, Lenders, Investors, Rate fluctuations, Mortgage landscape, Expert advice, Optimal Blue, Secondary marketing automation, Pricing accuracy, Margin protection, Risk management, Originators, Originations

Mentioned in this episode:

Optimal Blue Summit 2026 | February 23-25 | Scottsdale, Arizona

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Summit - OI

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AI at Optimal Blue - OI