Joseph Wang: Mortgage Rates Will Go Even HIGHER!

Jason Hartman invites Joseph Wang aka The Fed Guy, to the show today. Who better to talk about the inner workings of the Federal Reserve than someone who actually worked there! Joseph Wang is a former senior trader on the open markets desk at the Federal Reserve and the author of Central Banking 101.

Jason and Joseph tackle the biggest question on everyone’s mind: will mortgage rates go higher? How much higher can they go? Why did the Fed wait so long to start quantitative tightening and raise rates? Why didn’t they do it more gradually?

Do you think Powell really thought inflation was transitory as he kept saying? It seems there was a political basis for him thinking that way, which filtered into policy and partially resulted in the huge inflation we're seeing right now. But what gives? If you don’t raise rates in order to avoid increased unemployment, then inflation will continue.

Joseph Wang also gives his take on the Fed’s response during times of economic crisis such as the Great Recession and the recent pandemic. Was it right of the Fed to get involved and stimulate the economy, or should they have let the economy and markets work themselves out?

Is the Fed part of a greater conspiracy? Is there a man behind the curtain pulling the strings? Joseph Wang tells all!

0:00 Welcome Empowered Investors
0:51 What is it like to work at the Federal Reserve?
2:35 Fiction allows you to say things without being censored
3:20 G7 leaders want to destroy the value of your currency through inflation
6:44 Mortgage rates are higher but you’re still getting paid to borrow
9:01 Mortgage rates are still below inflation
12:10 Bidding wars in the rental market
17:02 New York City is making a comeback
18:50 Welcome Joseph Wang, former senior trader on the open markets desk at the Federal Reserve, author of Central Banking 101
19:55 Interest rates and mortgage backed securities
22:25 Quantitative easing - buying mortgages and treasuries, quantitative tightening - higher mortgage rates
25:43 Raising the borrowing rate above the inflation rate
27:55 Rents are going higher
29:58 Short term vs long term interest rates
31:17 Decreased labor supply and higher wages
32:55 China is the fastest aging country in the entire world
35:46 The Fed is absolutely political
39:59 Debt to GDP ratio and the dollar collapse
42:44 Why do other countries buy dollars?
46:15 Bloodbath in the cryptocurrency markets
48:15 Understanding the Fed - is there a man behind the curtain?
50:18 Was the Fed right to interfere during Covid and the Great Recession?
53:15 What is a shadow bank?
55:18 The story behind Long Term Capital Management
56:20 Economic outlook: be cautious with financial assets

🏆🏆🏆 Contest Winners from the this month🏆🏆🏆
YouTube: Politicracked Podcast, John Cottom, Ted Bauer, Brooklyn Soccer
Creating Wealth Podcast Review: Isaac Wels, Nate Mur, BradyGtt, ETrain7273

Get the latest from Jason!

Learn More:

Listen to The Creating Wealth Podcast:

Special Offer from Ron LeGrand:  

Free Mini-Book on Pandemic Investing:

Free Class: Easily get up to $250,000 in funding for real estate, business or anything else

Jason’s TV Clips:

CYA Protect Your Assets, Save Taxes & Estate Planning:

What do Jason’s clients say?

Guided Visualization for Investors:

Find us on other video platforms:

Have questions or topics you want me to do a video on? Let us know in the comments below. If you love real estate investing, SUBSCRIBE!

Subscribe to Jason’s other YouTube Channels!

Jason Hartman Extra:

Real Estate News and Technology:

#jasonhartman #josephwang #thefedguy #federalreserve #inflation #realestate #mortgagerates

[Tie]

You are possibly the most underrated personalities on YouTube. I wish I heard about you 10 years ago!

[almostastar]

Enjoyed meeting you Jason and Joseph at George Gammon‘s event in Miami. Learned a lot and confirmed a lot. Keep up the good info!

[derrickjohnson]

Hi Jason long time listener and fellow investor new to your you tube platform.Very impressed with your mastermind group!Our friend G.G. teaches us this all the time. That's what I'm talking about Jason buy buy buy buy buy real estate.Rents in Texas are still peaking but it's getting close to reversing.Otherwise you need that paper➡️ Finally if it doesn't reverse rents will stay stagnant for awhile.I don't know about how high they could go.Mass layoffs are right around the corner.

[jamesr]

Your the man Jason keep up the good work!

[naumovic]

Outstanding content Jason & Joseph. You also did an excellent job in person back in January in Houston. Thank you both!

[yvvilliam]

Great content Jason, glad i found your channel

[jbl]

Great new content Jason, keep them coming!

[CmdrCorn]

Wow that crew in the photo... Amazing.
Snider and Milkshake Man in particular are my favorite minds at this point in the cycle.

[Ice-qqor]

Can you explain the importance of why inflation rate higher than interest rate is a good opportunity?

[ji-inroh]

The wage-price spiral is real. Great job.

[justafella]

The mortgage rate arbitrage versus inflation rate opportunity is so obvious yet so ignored it's unbelievable.

[Heather-xwtv]

Do you think the interest rates will bring down home prices?

[Red]

Outstanding interview. We learned a lot!

[megga]

Hi Jason, thanks for doing these videos. As you stated, people are currently getting paid to borrow. However, what happens if the Fed manages to bring down inflation below current mortgage rates?

[alparun]

Agreed that 9% inflation vs 6% mortgage rate is making sense for utilizing income induced debt destruction strategy. What if inflation rate goes back to target rate of 2% in couple of years but you stuck with 30 year mortgage at 6-7%? Wouldn't this be opposite given prices stay stagnant?

Agreed on PMs choosing path of least resistance. But landlord can jack up the rents only considering supply of relevant rentals in a given area if you want to keep low vacancy rate. Higher rental price along with higher vacancy rate in long term rentals will almost always lower your net income.

[progressiveanimalhospital]

fan of all your content....Burning Question...How do you feel about...the strategy of using a HELOC...to pay off your mortgage in half the time of traditional amortization.

[CmdrCorn]

So is there something to be said about the "demand destruction" equivalent of rentership? I mean, if supply is really that low, and incomes are missing the mark compared to inflation by about half, at some point people simply will not be able to afford to keep up with not just ownership but even rent price increases right?
Is there any historical context for something like a "renters strike" or some kind of event where people have actively pressured the market to lower prices? Or does the difference fall more on employers or other entities like utilities etc?

[easyrent]

What would you say, when the guy gets a mortgage 5% for 30 years and inflation goes down to 2%, 3% or so in a year or two, would that be a good deal ?? Let’s look into the future for a bit .

[davidconstantinfit]

Wow 20mins of bs. Just get the interview started…

[jamesr]

We just bought a second home here in Orlando fl rented our old house considering buying a third house and renting this house we bought now wouldn’t cash flow well but would break even would you consider being agressive in this type of market Jason? Thank you kindly