Ep. 110 - The Jerome Powell Show | Consumer Debt Continues To Surge | #002
In this episode, Quinton examines the rising tide of credit card debt, now topping $17 trillion and leading to a surge in delinquencies especially among millennials. With interest rates stuck near 20-25%, now may be the ideal time to tap record home equity levels to pay down crippling high-interest debt. We discuss another regional bank failure, a recession red flag, and strategies for mortgage originators to provide debt consolidation advice to struggling customers. With inflation still elevated, relief may be temporary. The lag effect of previous hikes continues to hit the public, elevating mortgage rates despite two Fed pauses. With a close eye on the data, we break down what indicators could force the Fed to hike again versus cutting rates amidst recession concerns
[00:00 - 03:28] - Rapidly Rising Consumer Debt
[03:28 - 05:34] - Effects of Federal Reserve's Interest Rate Hikes
[05:34 - 09:18] - Delinquency Rates and Economic Indicators.
[09:19 - 12:33] - Debt Consolidation Strategy
[12:34 - 16:32] - Federal Reserve's Future Moves & Outlook for the Economy
Key Quote:
“These are recessionary signs. These are signs that I don't believe are a soft landing. These are signs where I continue to say the Federal Reserve is pushing the envelope until they break something.” - Quinton Harris
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