Fed Chair

[Zoe]

This is interesting from Fed Chair but it makes a bunch of sense.

Powell says rate cuts won't make 'much of a difference' for struggling housing sector

Federal Reserve Chairman Jerome Powell warned that housing market struggles will persist despite rate cuts, citing low inventory and affordability challenges for buyers.

www.foxbusiness.com

 

[Zoe]

Tariffs are making building costs higher so that is an impact on new housing supply also.

 

[Fernando]

Today Powell acknowledged that he has been subpoenaed and first time he responded against a President. About time.
Greenspan, Bernanke, and Yellen are supporting Powell in that the Fed should be independent from outside influence (that means Trump).

 

[Zoe]

Fed leaving fed funds rate alone. Employment numbers they say are steady and inflation numbers not great. They say this war has got them uncertain on what to do. They left fed funds rate alone.

I thought unemployment numbers were up. It is like this administration has their hands tied between employment and inflation in regards to fed funds rate.

Trump thought if he fired Powell, he would be in better shape. Wrong again Trump.

Lowering fed funds rate helps employment but it raises inflation. Raising fed funds rate hurts employment but lowers inflation.