" Zandi spoke Friday in an interview on CNBC’s "Closing Bell: Overtime". S.
2% forecast. The host noted that expectations for a December rate hike have risen to nearly 80%.
Strong Jobs Report Revives December Rate Hike Bets Zandi called it "a really solid report," but said "a lot of noise" in it overstates the labor market’s strength. " Inflation "still remains elevated," he said, though core CPI, due next week, looks like it will decelerate.
Fed members are "still very nervous about the high rates of inflation," and with this jobs number, "they’ve got latitude to raise rates," said Zandi. "I think there’s very high probability they hike in December," he said.
" "So this might be one more rate hike and that’s the end of it," he said, adding that there could be "another rate hike or two in 2027" if not. " Asked what a slowdown in data center construction would mean for the economy, Zandi said the AI boom is currently juicing growth through spending and higher stock prices, and also adds to inflation through electricity, chips and consumer electronics.
" Zandi and JPMorgan Warn of Consumer and Housing Strain Zandi’s housing remarks follow comments he made in September on the Inside Economics podcast. He challenged Visa Inc.
" Zandi said Wall Street was "too optimistic" about the consumer, pointing to flat real wage growth, a lower savings rate and rising interest rates. P.
" He said the cost for a renter to buy a median-priced home is about 50% of median income, versus 20% to 25% for existing mortgage holders locked into lower rates. About 75% of borrowers have mortgage rates below 5%, he said.
