Mortgage rates continue to climb despite the Federal Reserve's fifty basis point cut, which many expected would provide relief to the housing market. Nobel laureate and New York Times Op-Ed columnist Paul Krugman joins Catalysts to discuss how the election climate influences interest rates.

"The Fed responds to conditions," Krugman explains. He notes that the current election period has created significant uncertainty, with economists evaluating the potential economic impact of a Trump presidency, characterizing his policies as "Pandemic 2.0."

"The economists, both academic and business economists, are overwhelmingly of the opinion that Trump will be much worse for the economy. Especially on inflation," he tells Yahoo Finance. However, Krugman observes that public perception isn't focused on policy implications but rather on "memories" of the pre-pandemic Trump presidency, when inflation remained low.

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This post was written by Angel Smith