Fed rate cuts are unlikely to lower borrowing costs for American homebuyers, according to one CIO. Mortgage rates and home prices remain elevated.

The takeaway is that markets aren’t pricing in any sort of “succession premium” tied to any one chairman. The glidepath of monetary policy — regardless of Powell’s successor — appears structural, anchored to the Fed’s backward-looking framework . If that holds, it would mark a break from recent history.

Bond traders are betting on a Federal Reserve rate cut next month, with eyes on Chair Jerome Powell’s speech Friday at Jackson Hole. Traders expect Powell to adopt a dovish tone due to a weakening job market,