The Federal Reserve Issues a Grave Alert: "The Deterioration of Financial Conditions is Accelerating"
Jerome Powell & the Federal Reserve just issued a major warning to the US Economy and Housing Market. Suggesting that financial conditions are tightening "more than the traditional metrics suggest". That's Powell implying that a bank credit crisis could be overtaking the US Economy in 2023. Which, combined with Fed Interest Rates Hikes, could mean that the layoffs are about to get much worse. Companies like Meta, Amazon, and Indeed are the most recent ones to announce big layoffs. The layoffs by Indeed are especially concerning. Because they have lots of data on the US Job Market. And they are seeing a big slowdown in new job listings. Which means the Recession in 2023 could accelerate. But these white collar layoffs haven't spread yet to the rest of the economy. Causing some to think that we'll have a "Soft Landing". Or will avoid a Recession entirely. Nearly 50% of the subscribers on my YouTube Channel think that at most we will experience a normal recession. However, people need to be careful to account for the lag that takes place between layoff announcements and economic contagion. As more white-collar workers lose their jobs, consumer spending will go down. And as consumer spending will go down, the layoffs will spread. Which will make the Housing Crash worse. Especially in states like California where the home sales have already gone down 30-40% YoY. They will likely keep declining in metros like San Diego, Los Angeles, and San Francisco because the huge economic exposure to the layoffs. --- REVENTURE APP: www.reventure.app INSTAGRAM: TWITTER: DISCLAIMER: This video content is intended only for informational, educational, and entertainment purposes. Neither Reventure Consulting or Nicholas Gerli are registered financial advisors. Your use of Reventure Consulting's YouTube channel and your reliance on any information on the channel is solely at your own risk. Moreover, the use of the Internet (including, but not limited to, YouTube, E-Mail, and Instagram) for communications with Reventure Consulting does not establish a formal business relationship. Image(s) and/or Footage used under license from Shutterstock.com. Additional stock footage provided by Envato Elements. #HousingCrash...(read more)
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The Federal Reserve recently issued a warning that the United States' financial conditions are getting worse. In an announcement made after their September meeting, Fed policymakers revealed that the country's economic recovery is losing momentum, and risks are stacking up, both at home and abroad. The Fed noted that the ongoing coronavirus pandemic continues to have a significant impact on the country's economic activity, as evidenced by the high number of job losses and business closures. Moreover, the resurgence of virus cases in some parts of the country has further hampered the recovery, with policymakers warning that the path forward may be long and uncertain. The Fed's announcement highlights the growing concern that several headwinds are threatening the country's financial system. Since the start of the pandemic earlier this year, the US government has injected trillions of dollars into the economy to shore up businesses and households affected by COVID-19. However, with the number of infections and deaths still surging, there are doubts about the economy's ability to recover quickly. The Fed's announcement also cited concerns about the political environment, noting that the upcoming presidential election in November could bring further uncertainty, which could unnerve investors and slow down the economy's progress. Furthermore, political tensions between the US and China and other geopolitical risks around the world could similarly weigh on the economic outlook. The Fed's warning of worsening financial conditions comes at a time when the country's economic recovery is already showing signs of slowing down. In recent months, there has been a slip in consumer confidence, rising unemployment rates, a decline in retail sales, and an increase in business bankruptcies. These indications point to a more extended economic slowdown that could be difficult to unwind. In response to the worsening economic condition, the Fed is expected to continue its efforts to support the economy, including maintaining low-interest rates, providing monetary stimulus, and supporting financial markets. However, policymakers warned that these measures alone may not be enough to address the mounting risks, suggesting that government intervention may be necessary to prevent a more significant economic downturn. Overall, the Fed's warning about worsening financial conditions underscores the need for continued vigilance and proactive measures to address the ongoing economic challenges. While there are reasons to remain hopeful, the path forward is indeed uncertain, and policymakers, businesses, and households must be prepared to adapt and work together to navigate the choppy waters ahead. https://inflationprotection.org/the-federal-reserve-issues-a-grave-alert-the-deterioration-of-financial-conditions-is-accelerating/?feed_id=84701&_unique_id=642d01166642b #Inflation #Retirement #GoldIRA #Wealth #Investing #federalreserve #FinancialConditions #interestrates #jeromepowell #ratehikes #recession #RecessionNews #federalreserve #FinancialConditions #interestrates #jeromepowell #ratehikes #recession
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