URGENT: Federal Reserve Announces MASSIVE Rate Cut, Bailout Begins!
Get free life insurance quotes from America’s top insurers and start saving today with Policygenius: | Thanks to Policygenius for sponsoring this video! Let's discuss the Federal Reserve Rate Cut and what this means for the stock market, housing prices, and your money | Add me on Instagram: GPStephan
GET MY WEEKLY EMAIL MARKET RECAP NEWSLETTER:
THE AUGUST INFLATION REPORT:
It was just reported that inflation only rose by 0.2% in August, which was the lowest level since February of 2021. This effectively puts the 12-month inflation rate at just 2.5%, with Energy being one of the main culprits, having fallen 4%. On top of that, Used Cars and Trucks have declined 10%, new vehicles are down 1.2%, and oil is down 12.1% over a year.
THE STOCK MARKET:
Since the market is always forward-looking, stocks might sell off because rate hikes have already been priced in. For instance, one Investing.com analysis made the argument that investors “front-run” and anticipate future rate hikes – or cuts – and therefore, everything that happened today is already factored into where it’s trading. In terms of what’s most likely to happen in the future, history tells us that it all depends on whether or not we avoid a recession, which means according to all of the data, it appears as though rate cuts do not make AS BIG of a difference as people make it out to be, compared to the overall health of the economy.
HOUSING PRICES:
The good news – for buyers – is that prices are starting to get cut. A recent report found that “The share of available listings that saw a price cut in July rose to 18.9%, causing the median price to fall from $445,000 to $439,000." Realtor dot com says there are two reasons for this: First, interest rates remain higher than expected (which means less buyer activity) and, two, a lot of would-be buyers are holding out for lower mortgage rates in the future – so, sellers are reducing their prices to entice them back.
In terms of rental prices, new data found that one-in-three property managers offered a concession on rents amid a glut of supply. Apparently, multi-family construction is on the rise, with “more units completed in June than in any month in nearly 50 years.”
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: – $100 OFF WITH CODE 100OFF
My ENTIRE Camera and Recording Equipment:
For business inquiries, you can reach me at grahamstephanbusiness@gmail.com
*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.
-Get free life insurance quotes from America’s top insurers and start saving today with Policygenius: https://Policygenius.com/graham
-Here is a link containing the source material for each piece of research cited. I do my best to make my videos as accurate as I can, and the additional resources should help anyone who wants to look into them further – enjoy! https://docs.google.com/spreadsheets/d/1tc8aOfMzLF3AJvUIH6aZB9AguTwn3i7aUJh3J7wMaRo/edit?usp=sharing
Too late
But can I get life insurance BEFORE I die, so its not death insurance?
The Federal Reserve cut down 0.5% is only a maneuver to help Democrats in the November election. The inflation is in no way going down.
What do you need to know is how the Federal Reserve was created and who signed the bill.
Federal Reserve is as federal as Federal Express.
I think the Posters Personal Assistant Coach Hilder trades for everyone I meet. I met her twice at a meeting in Connecticut and after her lectures from her. I had to personally ask her to be my financial advisor. she is definitely good.
I have never seen a trader as open and transparent as Coach Hilder with her clients. The way she decides to make a profit for her clients. she allows you to express your fears and she still rests your fears and that is my respect. I don’t normally comment on videos, but this word should be included. she is really cool.
Govt will print more money and People will spend more and inflation will skyrocket again
You can always raise rates
Let’s see, the FED seems to think the jobs market is going to be slowing down a bit
What would be the point? 😂
It’s just to try and bump the economy for the election.
@@judaspriestchild To spend money we don’t have on things we don’t need, so the politicians can launder it through their buddies NGO’s
prices did not come back down. they just stopped going up as much, and the inflation numbers are a bunch of lies anyways.
Some areas are coming back down, check the recent report!
The prices youre talking about isnt inflation its corporate greed.
Prices came back down here in rural WV, but there are food shortages due to the recent drought, so all the food is coming in from out of state.
@@asdfmldasklfdhjlasd ah yes, those greedy grocery stores and their…1.5% profit margins. and to the guy below me who says the manufacturers are the greedy ones: Tyson: 1.43%, Sysco: 2.98%, PFG: 1.44%. wow. so greedy.
He’s talking about fake data in the government reports… he’s not likely to believe the new report because it’s a newer lie… that’s my educated guess anyway
The biggest problem is that salaries aren’t going significantly up, and companies aren’t hiring full time jobs regardless of what unemployment rates say. The big companies I know have either let go of almost all their contractors or are continuing to let go of contractors. Rate cuts aren’t going to change that any time soon.
My salary is up over 24% in the past 24 months.
@@CurieBohrSo is everyone else in the 16-24 age group and delinquencies/ charge offs are at ATH’s. Things are bad.
@@Zygote1205 I’m not in that age group. I’m not suffering. But, I had a household income of 175k before the 24%
@@CurieBohr good for you dude; do you want a soap box so you can tell the world? 😂
@@sangmoon2464 I think the “biggest problem” is now AI is being used to carefully plan supply against demand, so as to keep prices just where they need to be to maximize profits.
The disaster is all ready here, people are broke. It’s going to get worse when they start the layoffs this fall. The final nail in the coffin is when all of the corporate real-estate defaults finally hit the books.
you get what you vote for, luckily for me im a truck driver and highly needed here in the us lol
Spring of 2008 is here
@@daMillenialTrucker you saying the truck market is gonna turn around?
@@daMillenialTruckerpeep aurora innovation or Uber freight big dog
Powell basically said “grandma is fine”… after calling an ambulance for grandma.. the biggest FED cut in 16 years because the economy is great? Yeah right.
some years ago: “we are not going to raise rates until 2024”
reality: cutting rates in 2024
😮
They should have raised rates another quarter.
Prices are not coming down, they are just not rising as fast.
…YET!
Or products will be smaller ..
We are not going through deflation, they do not like seeing the value of things go down.
Wrong, some prices have come down, it’s just not all obvious and needs to be analyzed instead of a daily observation.
@@douglassmith9445 Some prices going down, like gas, are cyclical. Look over the past 20 years and you’ll see gas prices increase for spring and summer. The question is what price was gas last year during this exact same period?
Fed cutting rates by 0.5% feels like a band-aid fix. We need stronger fiscal policies, not quick cuts to cover up deeper issues in the economy.
It’s all a dog and pony show to garner votes for the Dems.
Elections coming up, so probably a political play.
What’s wrong with the economy is that government is 53% of gnp and most new jobs are government which is a drag on economy! Inflation is directly related to excessive government spending upon which higher interest rates have zero effect. Higher interest rates just make living more expensive!
Wow I’m SHOCKED! A big rate cut right before the election!
This!
Powell was put there by Trump
@@roboticbigfoot3222
Wouldn’t be the first appointee who went against him.
@@roboticbigfoot3222 Nice Try!
@@Globeguy1337 gee, i wonder why.
I swear the prices at the grocery store just went up in the couple of weeks.
I noticed this too. I shop at harris teeter and recently spent 100$ for basic breakfast and lunch grocery items
@@yusaydat12 Your scientific study has been accepted.
@@jdwyer5708 😂
I concur. I’ve noticed my grocery store advertisements aren’t giving the discounts that they used to.
Dude it’s 6 DOLLARS for 18 eggs. This is ridiculous!!
When you create 40% of all the dollars in existence over two years, prices are going to permanently increase. Things rebalance at the new price point before wages adjust. Thus fulfilling the prophecy that the peasant always pays.
How to make the peasant always pay. Someone typed that into an AI prompt. Now it’s Fed policy.
So true, except that we are all paying for the democratic idiocy forced on us for ’19’ reasons, including the wealthy – but the wealthy don’t feel the pain of price gouging like the rest of us do.
The government is the problem. Not the people
Wages won’t ever adjust. We’ll all figure out how to do less with less and skate by… 😭
How bold of you to assume the wages will adjust…
Walmart has started implementing digital price tags at all stores. This is so they can update and increase prices instantly in response to rapid and sudden inflationary events. Trust me, electronic price tags at Walmart is a very bad omen.
Sleeze bags Walmart.
Meh. Seems like this would be useful regardless.
Reason number 45 of why not to shop at Walmart
I haven’t been inside a Walmart in at least five years
That is very possible, but I do want to make people aware of how many hours a week employees spend just pricing and repricing items in the store. It’s a cost saver. Also it ‘should’ help with price accuracy – when something goes on, or comes off of sale 😊
So basically, he said nothing.
😂
They must be using AI to figure out how to squeeze every last dime of financial freedom out of the working class.
i hope so, Just remember AI suggests that rcoks will help with digestion, and glue on pizza helps hold it together. Dont worry about. AI its kinda a meme right now.
Probably
@@zippo32123 for being just a meme it’s basically doing all the heaving lifting for grad school
Ur joking, but some organizations literally are doing that
@@PlayboiMaui AI was a bogeyman for a few media cycles till advisors showed investors how it all works
I’m in tech. I’m an unemployed and the amount of competition I’m against when it comes to other tech workers who are out of jobs is insane.
Tech is dead man. I hold MSc in tech and I am changing to more “stable” fields. I cannot accept working in a field as volatile as this. Can’t raise a family working in tech.
When you say you’re in tech, are you actually? Like you have a STEM degree or your just a generic email worker that happens to work in a tech field?
Yeah tech is bad don’t do it 😉😉
@@williamrori1274 I’m a Network Engineer with a STEM degree, and I second what the OP is saying; I know a lot of qualified, highly capable people who have been laid off months ago and still haven’t found work. This is new, I’ve never seen it this bad, not even in 2008.
@@a.b232That’s why I left the field in 2009 as an IT Manager for a fortune 200 company. No regrets, 14 years of pred med, med school, residency and fellowship later…
Sounds like a skeptical outlook on things then. With the rate cuts do you think it’s best for us who are not conservative investors to focus on bonds or dividend stocks? I want to reallocate my 7-figure portfolio and I preferably want the assets with the best ROI.
Bonds are a safer bet. They offer good stable yields. But dividend stocks could make you a fortune if you know how to go about it. But it’s always a good idea to work with a CFA. It streamline your strategy and help profit a lot.
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased.
I’m currently working towards FIRE with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 30% NVDA, 25% SCHD, 15% VOO and over 30% in digital assets, thanks to my CFA. This strategy has helped me earn $49,000 a year in dividends. Back in 2014, I only earned $21 in dividends.
ls how can i meet this advis0r?
Jennifer Leigh Hickman is the Texas-based CFA I work with. Just search the name. You’d find necessary details to work with to set up an appointment.
We are in so much debt and no one talks about it
How does the national debt affect you? People bring up debt, but don’t really understand it. I know it sounds bad but its not
@@marselse When a larger and larger portion of your budget is going to interest on the debt then that means less spending for the people
The rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich
It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You’ve helped me a lot Ma’am, GERALDINE!! Imagine i invested $50,000 and received $190,500 after 14 days
Absolutely! Profits are possible, especially now, but complex transactions should be handled by experienced market professionals..
Some persons think inves’tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that’s why I’m lucky to have seen someone like mrs Geraldine Lane.
Waking up every 14th of each month to 210,000 dollars it’s a blessing to I and my family…Big gratitude to Geraldine Lane
Same here, with my current portfolio made from my investments with my personal financial advisor (Geraldine lane)
Wage inflation, food prices, gas prices, insurance prices, prices of new cars, prices of houses and rent, those are all things people are having to deal with….those prices are not going down. And most people, do not have any savings and are worried about saving money for retirement. The middle class is continuing on a downward spiral.
It’s impressive that this man has given quality financial news for years