Rebel Capitalist News Fed Rate Decision Just Released (What You Need To Know)
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Jun 19, 2025 The podcast dives into the Federal Reserve's decision to maintain steady interest rates and its surprising effect on the bond market. It also tackles the concept of stagflation, dissecting whether the term is being misused in current economic discussions. Listeners will uncover the stark contrast between economic statistics and reality, particularly the misleading portrayal of the labor market. Lastly, it analyzes the Fed's historically delayed responses to economic changes and the resulting market volatility.
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Fed's Confusing Rate Pause
- The Fed paused interest rate hikes, but bond market moves and Fed rhetoric created surprises.
- The Fed expects inflation to stay elevated and predicts two rate cuts despite stagflation concerns.
Stagflation Term Overused
- The term 'stagflation' is overused and losing precise economic meaning.
- True stagflation involves high inflation, high unemployment, and a contracting economy, which is not currently evident.
Unemployment Rate Masks Job Loss
- The headline unemployment rate hides worsening conditions due to a shrinking labor force.
- Despite a steady unemployment rate of 4.2%, the U.S. lost nearly 700,000 jobs in one month, indicating labor market weakness.