Why the Fed May Have to Force the US Into Recession
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- čas přidán 10. 04. 2024
- Frances Donald, chief economist at Manulife Investment Management, and BMO Capital Markets head of US rates strategy Ian Lyngen explain the biggest economic challenges facing the Federal Reserve as the central bank's 2% inflation target remains elusive. Frances and Ian speak with Tom Keene and Paul Sweeney on Bloomberg Radio.
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I’ve lived through two bouts of inflation and six recessions. The inflation was always 10x more painful than any recession.
Recessions are healthy for an economy to keep it strong. Whats not healthy is doing what they’ve been doing stopping them before they reach their natural conclusions.
Aw man not enough people are losing their jobs darn it 😢
The numbers don't lie but liars use numbers 🤓 🖕
Fed is doing exactly what they are aiming to do. They started this loose monetary conditions from last fall. They say they care about inflation but if you read Powell's commentaries over last six months, you know he is a dove by heart. He has been itching to cut rates for some time and was late to raising rates 2 years ago.
He's not a dove.
@@KK-pm7ud lol he even said just 2 weeks ago he wants to cut rates 3 times with the previous Jan and feb cpi prints. He is dove by heart and soul.
@@Fear.of.the.Dark. not to mention the whole "transitionary" thingy, anyone with any common sense would have seen the way Fed was printing money PLUS how the federal government was sending trillions of stimulus into a already overheat economy, inflation was inevitable. I just don't buy the whole notion that only Summers saw it coming among the elites, it was so obvious
@@Fear.of.the.Dark.Powell had to get pressured by Trump to cut in 2019 after 2018 tightening cycle. Powell is not a dove and never has been. Never in presidential history did a sitting president politicize the FED.
They don’t have to. They’re basing their moves on what benefits rich people not the average person. They could fix all of this with taxes but they’re too chicken sh*t.
And that is why you're not a member of the Fed. While I agree with you that the tax code should be adjusted, that alone wouldn't change things. An education in business and economics would help you understand.
Not to mention the Fed has nothing to do with the tax code.
The Fed can’t raise or cut taxes. That is for Congress and then the President to sign into law or veto.
rich people are doing fine, it's the Federal government that's silently pushing for cut: it's flat out broke, the way rate is, won't be too long before all of the people who want to send troops every where would not have enough money to pay for all of that
Please stop talking about economics. You are clueless
"The Federal Reserve System is not Federal; it has no reserves, and is not even a system at all. But rather an international criminal syndicate."- Eustace Mullins.
Fed is not forcing recession ....
Recession is the one forcing the Fed... force is unbearable to Fed, about to break... waiting for a video on how to survive in recession...
keep rates higher for longer; is ok as long as cpi and ppi are elevated
CPI and Core PCE
@@chrisginoc core pce or not, inflation is still too high. Taxes (federal level) may have to go up to stabilize fiscal policy and bond market (with no new spending;) otherwise, rates will have to be higher for longer.
transitory -> “retiring that term” and it’s not transitory. Next up is “soft landing” -> “bump in the road” -> “retiring these terms” as inflation fails to cool further and it becomes clear R* is very much elevated.
Good point.. the market has been crazy lately, a few surprises here and there.. with all the global happenings taking place I think it’s safe to say that a severe global recession is looming..
Oh yeah! You can definitely say that, it does worry me a bit, but not as much as it would worry the average guy, my investment portfolio has survived a couple of recessions unscathed, been privileged to be guided under the stewardship of an extremely gifted investment manager by the name Eric Paul Elmer
wake up smell coffee the system is rigged snow white
insurance (+ 22%) which is an outlier.
No brainer …..that you can print trillions of dollars and have no recession and have great economic growth.
Then every country will start printing monies.
Look at Argentina.
That’s what happened when you print monies.
USA has always printed money the only problem now is that it’s losing its world dollar reserve value, the time of USA printing money to solve problems is coming to an end
@@randomname1579
The good times are ending this time…..I think.
Jamie Diamond warned about a potential recession and he was shouted down.
transitory........terminal...........higher for longer..............higher for MUCH longer.................
If Congress were responsible, the Fed wouldn't have to do that.
The answer is the fed printed so much money it’s beyond comprehension. The money is massive and of course there is going to be inflation. This tiny amount of rate hikes are definitely not enough to control inflation after so much money being printed.
Don’t forget the fiscal stimulus by Congress too. They pumped out trillions in stimulus checks indiscriminately to people like me even who had no need for that money, gave me child tax credits when I didn’t need them, gave themselves and their friends massive PPP loans that didn’t have to be repaid, cancelled student loan debt for many, and passed MASSIVE spending bills under both Trump and Biden, R’s and D’s alike.
@@xxyyzz8464 I guess I’m the only one who didn’t receive anything. Double punishment in addition to being at work in danger.
@@genxx2724 They screwed over single people without kids who have a decent salary but aren’t rich. Everyone else (even the wealthy) were taken care of excessively in some way seemed.
Economic reset is called as a recession. The world is interlinked if you cut the link one needs to know who is the weak link. If the weak link is isolated the recession will not happen. So Bloomberg who is the weak link in this scenario? Now that is the the question for all economists.
She said “ downward surprises for growth”…wtf is that? Interest rates going down and creating growth? No surprises there, that’s how the system is designed. Not sure what this means.
Waiting for the Rug pull on Real Estate and Cars. these will plummet by 50 - 80% soon.
Recession already there years ago.
I thought the fed always reacts and is only reactionary?
job report aint great. only 7k white collar(well paying) jobs, lot of garbage part time and/or restaurant work
And yet Elon is worth 196 billion....as long as that disparity exists...get used to it. All hail free market capitalism! LMAO!!!
I'm ready for more stimulus checks and ubi
Like we aren't already in one! Lol
The definition changed, haven't you heard. lmao. I truly wish I was being sarcastic.
the plan the whole time
thx dems, remember a time when the borders were secure, the world was at peace, gas was cheap and plentiful, groceries were affordable, mortgage interest rates were 2.5%, and the economic outlook was optimistic. I sure do miss those good old days from just over three years ago.
Coming out of peoples mouths that are raking in large cash !!
US debt at U$35 trillion is 140% pf its U$ 25.44 trillion GDP. It borrows 40% of its GDP or U$10 trillion to achieve 1.6% growth or U$0.4 trillion. US economy has collapsed!
Lets all hope there is a recession
Yes we need a recession to lower Bidenfation. Bidenfation is worse than a recession because everything keeps getting expensive and wages don't rise. Homelessness increases, a lot of American workers living paycheck to paycheck and harder to own a house cause houses are very high under this economy. Trump is a bad person and Biden keeps inflation high cause he's reducing unemployment and creating more jobs. We need Trump in jail so somebody else get's a turn to run for Republican canadate but a good person so we can vote for Republican.
Rekt😊
He needs to find another way of speaking 0:37
This is rich next why they need a depression.
ive heard nothing but doom and gloom from 'the experts' while the stock market has gone up like 100%.
The average person still can barely afford groceries
Lies lies and filthy lies
lol
Fake News! Bull run 🌭
AB
Nobody knows anything
Biden just Lost
Stay mad the economy is gonna be ok
That's how powerful these people are. The same people that took out Epstein.
Delusional people talking about recession
Inflation is already almost zero, shelter is the only thing keeping inflation up. The reason shelter is going down so slowly is because interest rates are so high, high interest rates make rent and mortgages more expensive so shelter is remaining stubborn.
It’s not zero.. it’s accelerating. It’s never fallen below 3% since Covid
@@supreme5998 I'm not talking about the Headline CPI smh, this is exactly how the media controls people like you. Did you actually read the inflation report?
these aren't high interest rates lol get real . . .
lol
don't be dumb like jpmorgan ...
fed could hike rates 10% to crash the housing market demand bringing down shelter
or cut rates leading to more ppl buying house bidding up the price
Time for a US REVOLUTION!!! Once and for ALL!!!
How about this force some people out of office and candidacy be a great can't paint over a problem and think it's rebuilt just a warning Good afternoon Guys ❤️🇺🇲🦾😇