URGENT: Federal Reserve Cancels Rate Cut, Prices Fall, Tariffs Coming!
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RISING PRICES / INFLATION:
In the most recent inflation report, prices moved from a 2.7% increase in November to a 2.9% increase in December, driven higher by rising grocery costs. Gasoline prices are also up 4.4% from a month ago, and housing is up 4.6% from this time last year – which brought up the average, and gives us the 2.9% increase that we saw for headline CPI.
Thanksfully, CORE inflation finally decreased from 3.3% in November, to 3.2% in December – giving some hope that inflation is starting to make some progress.
POTENTIAL TRUMP TAX CUTS AND TARIFFS:
These are proposed changes that may or may not go into effect:
Making 2017 tax cuts permanent – Top tax bracket stays at 37%.
Corporate tax cut – Dropping from 20% to 15%, boosting business incentives.
Import tariffs – 20% on all imports, 60% on Chinese imports, with major economic implications.
Overtime pay & tips tax-free – A big win for workers, but potential loopholes exist.
No more Social Security income tax – Great for retirees, but concerns about sustainability.
Estate tax cuts made permanent – $28M exclusion for married couples.
SALT cap changes – Higher deductions for state and local taxes.
Ending clean energy tax credits – No more EV incentives.
DISCLAIMER: Realistically, not everything is going to pass. Even more realistically, we’ll probably wind up seeing a watered-down version by the time some of this goes into effect.
STOCK MARKET PRICING:
The stock market had an incredible run in 2023 and 2024, with the S&P 500 gaining 26% and 23%, respectively. However, most of these gains came from just seven major companies—Google, Apple, Amazon, Meta, Microsoft, Nvidia, and Tesla—raising concerns about market concentration similar to the Dotcom era. Despite this, analysts remain optimistic, with Goldman Sachs and others predicting a 10-20% increase in 2025, driven by potential corporate tax cuts and continued tech and AI growth.
While some worry that tariffs could slow the economy, history suggests that after two consecutive strong years, the market tends to rise again about 70% of the time. Of course, experts were completely off in their 2024 predictions, so take forecasts with a grain of salt. DeepSeek also threatens to halt chip demand, and this could lead to a reduction of spending going forward.
HOUSING MARKET:
Home prices climbed 3.4% in 2024, with the strongest gains in Miami and Chicago, while markets like Wyoming and Hawaii saw declines. Looking ahead to 2025, analysts expect more of the same; CoreLogic predicts a 3.8% increase, while Zillow forecasts a 2.6% rise, alongside higher inventory. Smaller homes may see more demand, and rents are expected to rise as new multi-family construction slows.
Long-term, experts believe housing prices will continue growing just above inflation, largely due to ongoing inventory shortages and stagnant homebuilding since the 2008 crisis. Unless a major recession forces the Fed to lower rates, affordability isn’t likely to improve anytime soon. So, while more homes may hit the market, don’t expect prices to drop significantly…real estate will remain a tough game for buyers in the years ahead.
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Egg prices are a manufactured price increase from large groceries trying to curb the cost before they lower prices going into easter.
Well done, Good Sir.
Never been this early to your videos been tuning in for years.
Second comment! Well done!
So if you’re rich yay if you are poor sucks to be you
It’s been this way since men learned to walk upright. Where you been?
How did Biden help poor people?
@@CurieBohrthere are ways to change that… not with billionaires in power but there are ways to make it more fair.
@@thedopplereffect00 That’s the fun part, he didn’t.
@@thedopplereffect00Biden raised taxes on people making over $600 online, before that it was $10k
Biden made it worse for the poor
What’s up Graham! I’m the guy who gave you and Jack a fist bump on the plane in Denver lol (tried to be discreet). As a long time subscriber, it was awesome. Wishing you guys the best this year!
Oh cool!! I remember – Thanks so much man, such a small world!
My brain broke with the intro 😂
😮
“What’s up Graham, it’s guys here” is an elite intro! I favor all of those videos over the not-so-fun normal intros
I loved it! What’s up you Graham, it’s here guys!
😂
Let’s play a game: Take a shot everytime Graham moves his hands while he talks.
lol
I’m down a 100 shots so far
Aaaaaand dead.
Um are you trying to cause alcohol poisoning?
Hard pass! Ever heard of alcohol poisoning 😂😂😂
Do a video on “How to buy a house in 2025” with some tips and tricks!
Great idea!
Easy video. Don’t.
That is a good idea. That said, I wouldn’t do it unless you love negative cash flow. At least in my area.
Step one: be rich or DON’T.
Do a 5% conventional loan. Multi family
As someone that works close to 1000 hours a year of OT I definitely wouldn’t mind it not being taxed. Anyway I hope something changes, Idc what “critiques” say or think because what we’re doing currently isnt working and I’d rather try and fail at new things than keep being a clog in the wheel on this old system.
I work 50+hrs a week.. no tax on OT is the only win I can see.
I don’t think most employers are all of a sudden going to start paying the difference for the tax which means cutting overtime hours
If your gas price comes down it would affect you wouldn’t it?
“No tax on OT” is a pipe dream. He just said that to get your vote. Just like with everything else he promised.
They are gonna change whats consider “Overtime”. Instead of 40 hours, theyll raise it to 80 hours
@eric.galano what “difference ” cutting taxes on OT does not effect the employer in any way.
So nothing changes and everything gets more expensive…sounds about right
Yay! The rich get richer, and the rest get poorer.
Not likely. No income tax means you can choose your taxes by choosing what you purchase. So even if you pay another $100 for a terrif transfer, you still make out by keeping 100% of your EARNED income
@curtiscruz8071 only if you’re too ignorant to understand how things work. Lack of understanding can be harmful to your success. Tarrifs replacing income tax is good for the most part. First off, currently, if you work hard to earn greater pay, you get punished with higher tax rates. Paying taxes to pay for stuff you may not use, support or have access too….though even if they increase sales tax due to taking away income tax you can choose what you buy, choosing what you pay in tax. Though it is also being used as a bargaining chip to get better deals for our country. Do a deal or get tarrifs.
@@sketchman1981: You’d be surprised how many products on the market use imported parts, or are made from imported materials. Most of the gasoline and diesel that US refineries produce comes from imported oil, which has historically been cheaper due to needing more processing. Taking that a little further, road repairs depend on bitumen; which is in short supply in US produced oil. I’m sure you can figure out the implications of that.
AMERICA voted for this
Half of American voters did.
Less than half of America
gotta love semantics
@@huntermacias2023 facts =/= semantics
@@volemekmore than half of voters
You know what else remains elevated? Our blood pressure.
😂😂😂 and damn indeed
So with tariffs, Americans pay more for products that ends up going to the governemnt, but lets cut the taxes that corporations pay? So the actual people will be picking up the slack?
Correct under Trump’s proposed plan, You only save money if you make more than $300,000 a year.
Yes. Billionaires win, we lose. Don’t know why people voted trump when he had billionaires whispering in his ear.
Yup
Im pretty sure the concept is that prices may go up because of tariffs but by cutting all federal tax, americans would ultimately have more money in their pocket even with prices being higher than they are now. Idk man that’s how it was explained to me.
@@Not_Ciel They lied to you. Was this person wearing a red hat?
LOL! You can’t “ignore” the cost of gasoline, because it’s used to transport all the other things you buy. Remember the old trucker saying “If you got it, a truck brought it.”
Tell that to the people calculating inflation lol
Which is hilarious, because trucks (the ones that actually haul stuff, not the oversized parking lot-ornaments) run on diesel; which is frequently broken down during refining to make gasoline.
Tariffs are paid by the company buying the goods. Then, the company charges the consumer more for the product to cover the tariffs. Inflation commences
And I’ve had so many people tell me, “The new tariffs can be charged to whomever.”
@peaceanquiet4528 Yeah, you can be charged if you buy a product with a tariff or anyone who buys it
@chucknorri5 the effect of the charge is passed on, not the charge itself.
And the company adds a little extra to make the shareholders happy, then we got hyperinflation. If they feel justified in raising prices they WILL ALWAYS go higher than they need.
The funny thing about tariffs is we’ve known they are a bad idea for centuries and we still keep doing them
7:21 skip the sponsor block
Good that $Flokong made it in time
This is also strong for all other coins imo
Bros need to buy this lolll
alright Floki you got me, damn it
Great timing, I will buy some of that
I made a lot with floki back in the days, will repeat here
The belief that the Federal Reserve would stop raising interest rates was the driving force behind the entire economic chaos. What should we do now that we have a situation where interest rates are crashing? At this point, how would you suggest that I safely allocate $300k?
Although the market is currently volatile, aren’t the current valuations a result of the Federal Reserve’s monetary policy and low interest rates? Therefore, my recommendation is that you consult a financial advisor who can give you entry and exit points for the shares that you are interested in.
Agreed, my portfolio is well-matched for every market season yielding 85% from early last year to date. I and my CFP are working on a 7 figure ballpark goal, tho this could take another year. IMO, financial advisors are the most sought-after professionals after doctors.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i’m in dire need of proper portfolio allocation
renowned for her proficiency and expertise in the financial market, ”Melissa Terri Swayne’’ my financial advisor, holds a broad understanding of portfolio diversification and is recognized as an authority in this domain.
This is useful information; I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
Back in my day there were enough toilet paper and eggs that you’d throw them at the house of your enemies and even the house of your friends just for fun
Haha, sure… Off to bed now, grandpa.
lmfaoooo
@@DavidB275😂 bro its real
I feel like I’m not receiving the right financial advice to grow the money I work so hard for each day. Unfortunately, my funds aren’t keeping up with inflation. With interest rates currently declining, what steps should we take next?
Diversify your investments with T-bills, CDs, gold, dividend stocks, municipal bonds, Bitcoin, real estate, and other assets. These can speak volumes when cash loses its value.
Many people underestimate the value of advisors until emotions lead to costly mistakes. A few summers ago, after my lengthy divorce, I needed support to keep my business afloat. I searched for licensed advisors and found someone highly qualified. Thanks to her expertise, she helped grow my reserve from $175K to $650K, even in the face of inflation.
I find your situation really interesting. Would you be open to recommending a trusted advisor you’ve worked with?
Sure you can! LAUREN CHRISTINE CAMPBELL is the advisor I work with. Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks for the info. I searched for her full name and found her website right away. I reviewed her credentials and did my research before reaching out to her.