Ep. 67 - The Fed's 'Pause Heard Around the World'

“We need more inflation—” the unwisest words spoken by one of the most unwise entities: The Federal Reserve. There is now a daunting battle being waged against inflation, and at the forefront of it is the Fed. What did they do while all this comes to a head? They paused! In this episode, we dissect how their attempt to rein in inflation to 2% could strain banks and muddle economic indicators. We also dive into the rising jobless claims and other symptoms of a weakening economy despite inflation peaking at 4.7%. After everything is laid out on the table, we’ll analyze whether the Fed can meet its goal, hinting at a possible halt in rate hikes and a potential move toward quantitative easing. 

Join us for a deep dive into these economic shifts and their potential implications!

[00:01 - 07:23] Exploring the impact of the Federal Reserve's "Pause Heard Around the World"

[07:24 - 11:44] Why Powell is putting pressure on the regional banking system: a tipping point

[11:45 - 16:18] Unemployment numbers aren’t matching up—job losses are reaching pre-pandemic highs

[16:19 - 20:52] The Fed’s actions speak louder than words and it’s affecting the real estate industry

Quotes:

"The reality is [the Fed’s] goal is to fight inflation and get that price stability down and get everything in the 2% range." - Quinton Harris

"The challenge with the Federal Reserve is that anytime they reduce rates and they make money cheaper, it's addictive to them. Let's not forget when they tighten policies, and they raise interest, short-term interest rates that is tightening the money cycle.” - Quinton Harris

"The numbers aren't lying. That's what I'm going to say. And I'm also saying that we don't have a strong economy because we have double inflation from where we want it to be." - Quinton Harris

You can now catch us on Spotify and watch our full video episodes, join in on Q&As, and participate in polls! 

Do you want to grow your wealth and leadership? Connect with us on Facebook, Twitter, and Instagram. Be sure to subscribe to us on YouTube to enjoy highlights and full video episodes. 

Bank of England is a nationwide lender that takes the time to understand your needs and structure the right mortgage for you and your family. Find your local branch at https://www.boemortgage.com/. 

Be sure to Subscribe, Share, and Leave a Review to let us know you want to keep the content coming.