Keep pulling the thread on Todd Sheets.
The ICBA and the Community Home Lenders of America have proposed that Fannie Mae and Freddie Mac purchase up to $300 billion of their own mortgage-backed securities to lower mortgage rates.
Financial expert Todd Sheets asserts that the Federal Reserve played a significant role in causing the Great Depression, the tech stock bubble, and the housing bubble.
In the 1920s, a Federal Reserve interest rate cut during a bull market caused the stock market to soar over 100% in 18 months, leading to the 1929 collapse.
Following the failure of Long-Term Capital Management, the Federal Reserve orchestrated a "stealth bailout" by having Wall Street firms acquire its assets and then cutting interest rates three times in 1998 to support them.
After the Federal Reserve's 1998 rate cuts, the NASDAQ index increased by 225% in approximately 18 months before collapsing in 2000.
The US housing bubble was initially triggered by Fannie Mae and Freddie Mac increasing capital flow to expand homeownership among low and moderate-income buyers.
In 1987, Federal Reserve Chair Alan Greenspan responded to a 20% one-day stock market correction by immediately lowering interest rates, a preemptive move outside the Fed's traditional mandate.
Todd Sheets believes the Federal Reserve made a mistake by cutting interest rates in November of last year when inflation was at 2.7%, still above the 2% target.
Todd Sheets believes the Trump administration is making a significant mistake by pressuring the Federal Reserve to lower interest rates further.
The Federal Reserve has signaled that it plans to cut interest rates again in December.
The Federal Reserve's ultra-low interest rate policies have disproportionately benefited older generations in the "ownership society" at the expense of younger generations.
According to Robert Shiller's index, national housing prices peaked around 195 during the housing bubble, corrected to 135, and have since risen to over 200 due to renewed low-interest-rate policies.