The Federal Reserve raised the federal funds target rate by 75 basis points, increasing that target to an upper bound of 4%. This marks the fourth consecutive increase of 75 basis points and pushes the fed funds rate to a 15-year high. These supersized hikes were intended to move monetary policy more rapidly to restrictive policy rates. The Fed’s leadership has previously signaled they intend to hold these restrictive rates for a substantial period time, perhaps into 2024. Importantly, the November policy statement also contained hints of a pivot to a slower rate of hikes in the future. …This verbiage indicates the Fed will adjust its future actions based on expected lags with already implemented tightening and will respond to additional signs of a slowing economy. …This is a positive development for housing because the current risk for Fed policy is of tightening too much and bringing on a more severe recession or a financial crisis.