US Federal Reserve officials struck a hawkish tone in their first comments since the central bank held the policy interest rate steady at its meeting this week but signaled that rate hikes will likely resume. Federal Reserve Governor Christopher Waller said that changes in US credit conditions since the failure of Silicon Valley Bank in early March were 'in line' with financial tightening that was already underway due to Federal Reserve interest rate increases - comments that downplayed the idea a worse-than-anticipated contraction in credit might make further Fed rate increases less necessary.
In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.
They discuss a report by John Burns Real Estate Consulting, indicating that the monthly premium on home ownership is up to $1,030 per month — up 17 percent from this month last year, when the difference favored renters by $884 per month.
Chris and Saied look at the staggering $1.3 billion every day the government pays in interest on its debt. This means that a substantial portion of taxpayer money is being allocated solely to cover the interest costs of the national debt.
They also offer some thoughts on Economist Nouriel Roubini's doubling down on dire warnings about the US, saying the nation is headed for a recession as a combo of higher interest rates, sticky inflation, and a credit squeeze barrel the economy.
Join Chris and Saied for this fascinating and informative conversation.
Enjoy!
What You’ll Learn in this Show:
- Nouriel Roubini's assertion that recession is now 'certain.'
- Why economists are saying say it's a near-certainty that housing inflation will fall.
- Why the hiring boom is hiding the fact that employees are working fewer hours.
- And so much more...
Resources:
"...there will 'certainly' be a recession: Nouriel Roubini" (Yahoo! Finance via YouTube)
"Fed policymakers deliver hawkish vibe after pause decision" (Reuters)
"Why economists say it’s a near certainty that housing inflation will soon fall" (CNBC)
"The government is paying $1.3 billion in interest on its debt every day" (Wealth via Instagram)
"Tech-Stock Boom Pits AI Against the Fed" (The Wall Street Journal)
"Lots of Hiring, but Not So Much Working" (The Wall Street Journal)
"Biden Touts Job Growth in First Re-Election Campaign Rally" (The Wall Street Journal)
"A recession is ‘at our doorstep,’ but investors are falling for a goldilocks scenario, Wells Fargo says. It ‘isn’t going to end all that well’" (Yahoo! Finance)
"U.S. Apartment Values 'Will Plunge A Further 20%,' Economists Say, But Wall Street Still Sees Major Upside In These REITs — Be Greedy When Others Are Fearful?" (Yahoo! Finance)
"Buying costs $1000 more per month than renting" (TheRealDeal via Instagram)
