Rebel Capitalist News Wow...Did You See The New Inflation Data?
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Jun 30, 2025 The latest inflation data reveals crucial shifts in consumer sentiment and spending, raising questions about the Federal Reserve's interest rate strategies. Concerns about the labor market grow, especially with the return of student loan payments. Additionally, the GDP discussion highlights the impacts of trade deficits and inventory levels on economic growth, with a focus on how these factors may signal approaching recession indicators. The hosts dissect the implications of these economic trends on future monetary policies.
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Inflation Data's Impact on Fed
- Inflation data raised doubts about a Fed rate cut in July but probabilities later normalized.
- Core PCE inflation data partly explains why the Fed is more likely to pause than cut rates soon.
Income and Spending Weaken Demand
- Personal income and spending figures missed expectations and dropped, suggesting weakening demand.
- This data contradicts a scenario of sustained consumer price inflation acceleration.
Student Loan Delinquencies Hurt Credit
- Rising student loan delinquencies will lower credit scores and reduce loan eligibility.
- This credit impact will suppress demand for housing, auto loans, and aggregate consumption.