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On May 22, 2026, Kevin Warsh was officially sworn in as Jerome Powell’s replacement as the Chair of the Federal Reserve. While Warsh has been outspoken about his plans to reduce the Federal funds rate among other critical changes, the on-going Iran War has tempered his plans for now. Warsh did state he wants the Fed to talk less and act more – trying to reduce the Fed’s outspoken communication so as to not affect the financial markets as much with their commentary. Warsh also wants to revisit existing economic models and instead look at new, more accurate ways to measure inflation and price stability. Warsh’s common sense approach is being met with quiet optimism for now.
Meanwhile, even though rates inched up just slightly in the past month, the housing market in Los Angeles showed notable resiliency. Closed sales increased with median home prices also either staying the same or increasing. Buyers definitely became more active with slight dips in the rates so there is pent up demand there.
As news of continued peace talks continue, with renewed optimism that the U.S. and Iran will enter into an acceptable peace treaty, rates are slowly floating back down --ever so slowly.
Likewise, oil prices have floated downwards, trading at the end of May below $100 a barrel. With the price of oil coming back down, our inflation numbers will hopefully track that downward trend as well.
Despite interest rates ending the month of May around 6.5% on average, there is still a lack of inventory in West Los Angeles which continues to support values --and will continue to support values despite the interest rate volatility.
