IT STARTED... "What's Coming Is WORSE Than A Recession"

so let's talk about this recession that Jerome Powell is going to cause with the fed and it's going to be brutal guys and you know especially for my my family on SSI social security SSI SSDI fixed income folks middle class low-income Americans if you don't have assets right now it's going to be painful especially if you don't have Assets Now they did a half a point great hike with their last meeting and Jerome Powell says that they're not stopping right there this is going to cause even more pain it's going to cause massive damage to our financial situation I'm talking about your credit cards your mortgage your car loans everything's going to be going up and inflation isn't going away either now the last inflation report may have shown that it was slowing down just just a little bit but prices the prices are still going up and it's just that you know they're not going up as fast like we had seen previously in the peak of inflation back in June but all this is doing a major number on stocks and our markets what can I say guys the recession is going to be brutal for non-wealthy Americans you know what I'm saying drop a quick Amen in the comments down below if you understand where I'm coming from I mean they don't even factor in the cost of food in the core inflation of the FED issues it's like they don't even care that is definitely nonsense for the people who are living in areas where food costs have skyrocketed families living on SNAP benefits EBT pebt food stamps as well no way that social security benefits and SNAP benefits could even begin to keep up with the rise in the cost of food I mean am I right now the FED did their last rate hike meeting and they decided to raise the interest rate by a half a percent now it was definitely a hawkish announcement in general and the stock market didn't react too well more on that later but really from the whole meeting and the post announcement the most exciting part was the Q a we'll pick up on that part a little bit later in this video as well but first some general information from the Jerome Powell announcement so Jerome Powell he's the head of the Federal Reserve and he made this rate hike announcement in his prepared remarks bottom line they want to stress just how committed they are to slowing down the economy and basically raising unemployment and lay paying off regular Americans well who do you think he's coming after when he's doing this and like I said guys they're not done yet the current inflation rate sitting at 7.1 percent and this is still really far off from the fed's two percent inflation Target so what I mean by this is there's still a lot more pain to come for Americans earlier I talked about inflation and how it's still going up and it's not going to go up as fast as it was before I mean same thing with those interest rates they're just not going up as fast as they were in the first four meetings before the last one the FED raised interest rates by 0.75 percentage Points each time that they met and you saw how the markets reacted stocks are down to new lows the housing market is no longer booming company after company announced massive layoffs now they just raise interest rates by 0.5 percent at the end of the day they're still seeing High interest rates for credit cards for mortgages and that won't further damage our economy and look out for the next one that's coming they're probably going to be raising rates again then the one after that the FED policy makers are forecasting that their key short-term interest rate will reach a range of five percent to five point two five percent by the end of 2023 and so this suggests that the FED is poised to raise its interest rates Again by an additional three quarters of a point and leave it there through next year but here's your own Powell talking about where they are policy wise Steve Eastman uh CNBC thanks for taking my question Mr chairman you just talked about the importance of uh market conditions uh reflecting the policy restraint you put in in place um since the November meeting the 10-year has declined by 60 basis points mortgage rates have come down high yield credit spreads have come in the economy is accelerated and uh the stock market's up six percent um is this loosening our financial conditions a problem for the FED in its effort and its fight against inflation and if so do you need to do something about that and how would you do something about that thank you so as I mentioned it is important that overall Financial conditions continue to reflect the policy restraint that we're putting in place to bring inflation down to two percent um we think that Financial conditions have tightened significantly in the past year but our policy actions work through financial conditions and those in turn affect affect economic activity the labor market and inflation so what we control is our policy moves and the communications that we make Financial conditions both anticipate and react to our actions I would I would add that our our focus is not on short-term moves but on on persistent moves uh and many many things of course move Financial conditions over time um I would say it's our judgment today that we're not at a sufficiently restrictive policy stance yet which is why we say that we would expect uh that ongoing hikes would be appropriate and I would point you to the SCP again for uh our current assessment of what of what that peak level will be uh as you as you will have seen uh 19 people filled out the uh the SCP this time and uh uh 17 of those 19 wrote down a peak rate of five percent or more in the fives so that's our best assessment today for what we think the peak rate will be you will also know that at each subsequent SCP during the course of this year we've actually increased our estimate of what that Peak rate will be and today uh were the sap that we're published shows again that overwhelmingly fomc participants believe that inflation risks are to the upside so I can't tell you confidently that we won't move up our estimate of the peak rate again at the next SCP I don't know what we'll do it will depend on future data what we're writing down today is our best estimate of what we think that that Peak rate will be based on what we know obviously if data if the inflation data come in worse that could move up if they and it could move down if uh inflation data are are softer so basically Powell is saying that they're not where they want to be yet when it comes to the economy now what I really want you guys to know about the meeting is that Jerome Powell is emphasizing how much the economy is going to have to weaken further going into 2023. now this is very concerning now he pointed out that the full effects of tightening of monetary policy are yet to be felt and we talked about this before in fact the Federal Reserve is expecting a very sharp pullback in growth in that the unemployment rate will rise to 4.6 at the end of the year we're currently sitting at 3.7 percent right now in terms of unemployment rate so that means a whole lot of layoffs that are inbound for Americans one estimate said that about 1.6 million jobs be lost now I hope you guys are prepared financially with an emergency fund and if not I certainly plan to be sharing more information on how you can get unemployment monthly payments weekly payments in the event that you happen to be laid off or fired well technically if you get fired usually won't get approved for those unemployment benefits but those who are being laid off generally will receive Severance packages unemployment benefits and the like you see the way it works is that the fed's latest increase its seventh rate height this year by the way it'll make even costlier for consumers and businesses to borrow for homes for automobile loans car loans and other purchases obviously credit cards as well now if on the other hand you have money to save you'll earn a little bit more interest on it basically banks are paying more interest because fed shared your own power rates interest rates and you're seeing higher and higher interest rates being paid out to some of your high yield savings accounts and if you're looking for one of the highest high yield savings accounts that are out there I actually found one and I dropped a link for you guys in the description down below also while you guys are down there make sure free home warranty quote the link is also in the description down below only takes about 15-20 minutes but really guys it's the headline here that anyone borrowing money to purchase large homes or any other kind of large purchase whether it's a large Appliance maybe a car they will take a hit now as Moody's Analytics points out quote the new rate hike pretty dramatically increases your monthly payments and your cost it also affects consumers who have a lot of credit card debt they will get hit right away end quote so even before the fed's latest move credit card borrowing rates have reached their highest level since 1996 and these are probably going to continue rising in the next credit card statements so check your mail guys Americans are definitely feeling it total credit card balances have topped a record high of 900 billion dollars a survey from morning console confirmed that more Americans are spending down the savings that they accumulated during the pandemic and are using credit cards instead So eventually Rising credit card rates interest rates they could make it harder for those households to ultimately pay off their debts now for people who have home equity lines of credit or other variable interest debt rates will increase by roughly the same amount as the FED height usually within one or two billing Cycles that's because those rates are based in part on banks prime rate which follows the feds now as for Savers high yield savings accounts and certificates of deposits also known as CDs they're at a high that they haven't seen since 2009 which means that households may want to boost their savings if at all possible get some of that free money you can also now earn more on bonds and other fixed income Investments online Savings Banks usually offer higher yields so you may want to check those out now looking at the real estate market mortgage buyer Freddie Mac recently reported that the average rate on The Benchmark 30-year mortgage it dipped to 6.33 so what this means is that the rate of a typical mortgage loan is still about twice as expensive as it was about a year ago now if you can afford a house right now if you can afford a home purchase right now then you're likely to have more options than any time you've had in the past year in terms of what's available in inventory but then again those payments they're going to be bigger now if you want to buy a car car payments are up by an average of 61 average car payment right now here in America is 718 a month the average payment for used vehicles is up 22 dollars per month sitting at 565 a month financing the average new vehicle with a price of forty seven thousand dollars it'll now cost you eight thousand four hundred thirty six dollars in interest now car market experts said well they're taking away the buying power so that you can't buy a vehicle anymore they're going to be fewer people that can afford it and grow and this is why we always say fixed income low income Social Security SSI SSDI the middle class is going to get hit the hardest in this economy in this new economy in the fed's economy and of course then there's crypto right I always get asked about it cryptocurrencies like Bitcoin have dropped in value ever since the FED began raising interest rates so have many previously high value technology stocks higher rates means that safe assets like treasuries have become more attractive to investors because the yields have increased this makes risky assets like technology stocks and cryptocurrencies a lot less attractive and then there's the recent news of the three major crypto firms that are going under most recently the high profile FTX exchange now this doesn't do a whole heck of a lot for confidence in terms of crypto investors you guys know what I'm saying right entrepreneurs are frightened if they're pulling out of the cryptocurrency market but really guys it would be smart to prepare for the worst in the stock market plus some major layouts in 2023 not to mention tons and tons of entrepreneurial landlords looking to raise rent payments going into 2023. now as Jerome Powell said himself quote I just don't think that anyone knows whether we're going to have a recession or not I wish there were a completely painless way to restore price stability there isn't end quote shouldn't they know it being the Federal Reserve some fed officials have pointed to some evidence of progress to their two percent annual Target the national average for a gallon of gasoline for example it tumbled from five dollars in June to three dollars and 21 cents many Supply chains are no longer clogged thereby reducing Goods prices the better than expected inflation data show that the prices of used cars furniture and toys they all declined so did the cost of services from hotels and airfares for car rentals rental and home prices are falling though we haven't seen those decline lines feed into the government's data yet and one measure that the FED tracks very very closely core prices which exclude volatile food and energy costs for a clearer snapshot of underlying inflation grows only slightly for a second straight month many economists think that the FED will shift things down to a quarter point rate hike when it meets early next year asked about that Powell said that he has yet to decide how large he thinks that he should do the next hike he said that they should quote think the appropriate thing to do right now is to move at a slower Pace that will allow us to feel our way end quote so here are the Wall Street Pros breaking things down for us [Music] the market is clearly underestimating how high we're going to have to raise rates to cut inflation that scared the heck out of everybody in Europe and the yields on European bonds began to spike now we already had weak economic data here we were so after that led to these lows that that spike in European rates the reaction we just saw in the last couple of days is both technical but also exacerbated by the fed's hawkish stands at least on on paper so far it's really important for investors not to get lost in the FED sauce at this point and to really stay focused on how every Market reset presents basically a corridor of new investing opportunity if you engage the market with a capitalist mindset it looks like the consensus is saying that investors shouldn't expect the Federal Reserve to go easy on the economy because the to suffering here's a quote that I got investors have to learn that the FED is not your friend it is not your pal if anything it's your enemy at least until chair Jay Powell finally beats inflation end quote stocks fell after fresh data show retail sales fell more than expected also dragging down the market where Hawkeyes comments from the Federal Reserve as I said here quote Powell could not have been more clear that he's not just trying to stabilize prices at these levels he wants to roll back the price increases from the last couple of years end quote wow now this makes things even more likely that we may see a major drop in the 20 range in the stock market next year like I said here quote well Jerome Powell is not explicitly trying to send stocks lower he's certainly not going to shed any tears over it if anything lower stock prices are a win for the fed and quote definitely something to consider you guys really the key to Financial Freedom is saving it's earning money and it's investing now if you have the capital to invest in the stock market in real estate all that much better for you and if you're not there yeah you can add to your income streams via a side hustle or even a small business now right here you guys if you guys have any questions for me just let me know if you need any help understanding any of this and give this video a like if you're tired of the government taking it out on working class Americans better yet go ahead and share this video with your friends and your loved ones who can appreciate this information just go ahead and hit the share button right there guys more to come in the next one but for now this is our big money update and daily news report the brutal power recession that's coming for our stocks our jobs and our wallets predictions of where the fed's going in 2023 and how you should prepare for sh or craft to hit the fan even if you're on fixed income Social Security SSDI and as always I want to thank you guys so much for watching the video appreciate you guys dropping a like for the video and I look forward to seeing you guys on the next one y'all stay blessed and be safe