GET UP TO $100 OF FREE CRYPTO: Trade Bitcoin, Doge, and other crypto with low fees on FTX. Use my referral code GRAHAM: https://ftx.us/partners/graham - Enjoy! Lets talk about latest Federal Reserve Rate Hike from Jerome Powell - Add me on Instagram: GPStephan
GET YOUR FREE STOCK WORTH UP TO $1000 ON PUBLIC & READ MY THOUGHTS ON THE MARKET - USE CODE GRAHAM: http://www.public.com/graham
NEW BANKROLL COFFEE NOW FOR SALE: http://www.bankrollcoffee.com
GET MY WEEKLY EMAIL MARKET RECAP NEWSLETTER: http://grahamstephan.com/newsletter
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://the-real-estate-agent-academy... - $100 OFF WITH CODE 100OFF
THE SEPTEMBER FEDERAL RESERVE MEETING:
They said, that we’re most likely to see ANOTHER 75 basis point rate increase at their NEXT meeting in November, along with another 50 basis point hike in December, putting us at interest rates note last seen since prior to The Great Recession.
In addition to that, they ALSO made it apparent that they expect 2022 to see next to no GDP growth, at just 0.2%…and, have revised every single projection DOWNWARDS…implying that our economy is likely to slow down FURTHER than expected, potentially bringing us through an economic recession.
Because of that, they mentioned that a “SOFT LANDING” will be challenging, and will ultimately depend on how long prices stay high - after all, they understand that inflation is largely driven by supply shocks and various other factors that they have absolutely no control over - so, the longer those issues persist, the worse it’s going to be for OUR economy.
Jerome Powell also said, that it’s also important that they hike rates NOW while earnings are still strong, employment is still high, and the economy can absorb some of the “shock” - than wait too long for the economy to overheat, and then - it’ll be much more difficult to get under control.
In addition to that, they ALSO mentioned that the unemployment rate is LIKELY going to increase in their effort to “restore price stability,” going from 3.8% to 4.4% next year…and, we’re probably going to see fewer job openings until they begin to reverse course…in 2025.
In the mean time, they don’t intend to front load more rate hikes than necessary and “shock the market” to “get it over with”….but, they did say, that the housing market is likely to go through a “correction,” while prices “reset” to a new normal, following higher mortgage rates.
In terms of how much a correction we might see…by definition, it’s a decline between 10 and no more than 20% off peak prices…so, if he’s correct…we could see housing levels come back down to where they were at the beginning of 2021.
OVERALL, though, this entire meeting was rather BEARISH, with a very clear message that: rates are going higher, they’re STAYING higher - for longer…and unemployment is going to INCREASE. This was a very different message than his previous meetings, where - it was mentioned that they’re “committed to fighting inflation,” while waiting a rosy outlook for the future...but this time…not so much.
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamste...
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at [email protected]
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/
GET YOUR FREE STOCK WORTH UP TO $1000 ON PUBLIC & READ MY THOUGHTS ON THE MARKET - USE CODE GRAHAM: http://www.public.com/graham
NEW BANKROLL COFFEE NOW FOR SALE: http://www.bankrollcoffee.com
GET MY WEEKLY EMAIL MARKET RECAP NEWSLETTER: http://grahamstephan.com/newsletter
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://the-real-estate-agent-academy... - $100 OFF WITH CODE 100OFF
THE SEPTEMBER FEDERAL RESERVE MEETING:
They said, that we’re most likely to see ANOTHER 75 basis point rate increase at their NEXT meeting in November, along with another 50 basis point hike in December, putting us at interest rates note last seen since prior to The Great Recession.
In addition to that, they ALSO made it apparent that they expect 2022 to see next to no GDP growth, at just 0.2%…and, have revised every single projection DOWNWARDS…implying that our economy is likely to slow down FURTHER than expected, potentially bringing us through an economic recession.
Because of that, they mentioned that a “SOFT LANDING” will be challenging, and will ultimately depend on how long prices stay high - after all, they understand that inflation is largely driven by supply shocks and various other factors that they have absolutely no control over - so, the longer those issues persist, the worse it’s going to be for OUR economy.
Jerome Powell also said, that it’s also important that they hike rates NOW while earnings are still strong, employment is still high, and the economy can absorb some of the “shock” - than wait too long for the economy to overheat, and then - it’ll be much more difficult to get under control.
In addition to that, they ALSO mentioned that the unemployment rate is LIKELY going to increase in their effort to “restore price stability,” going from 3.8% to 4.4% next year…and, we’re probably going to see fewer job openings until they begin to reverse course…in 2025.
In the mean time, they don’t intend to front load more rate hikes than necessary and “shock the market” to “get it over with”….but, they did say, that the housing market is likely to go through a “correction,” while prices “reset” to a new normal, following higher mortgage rates.
In terms of how much a correction we might see…by definition, it’s a decline between 10 and no more than 20% off peak prices…so, if he’s correct…we could see housing levels come back down to where they were at the beginning of 2021.
OVERALL, though, this entire meeting was rather BEARISH, with a very clear message that: rates are going higher, they’re STAYING higher - for longer…and unemployment is going to INCREASE. This was a very different message than his previous meetings, where - it was mentioned that they’re “committed to fighting inflation,” while waiting a rosy outlook for the future...but this time…not so much.
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamste...
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at [email protected]
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/