September 2, 2023
Inflation is coming down. The jobs market is strong. Credit card debt is the highest it’s ever been. Unemployment ticked up in august. Hourly wages are up. Credit card delinquencies are up. Hiring is slowing down. Consumer spending is up. And mortgage rates are hitting 20 year highs.
I know all the headlines about the economy are overwhelming, there’s good, there’s bad they contradict and sometimes they just don’t match up with what you feel in your everyday life.
But the reality is — in less than three weeks, the Federal Reserve will take all the actual data behind those contradicting headlines and decide whether or not to raise interest rates again.
So do we have a hint at which way they’re leaning?
Yeah.
And before I share it with you — I want to thank my TikTok subscribers for voting for this story as the bonus this week. If you want to vote too – the only way to do that is to subscribe to my page. You can do that during my next live event or you can now just go to my profile and follow the steps.
Now – back to that Federal Reserve hint. Last week the Fed Chairman said this.
You heard em. They’re not afraid to raise interest rates. In fact, the chairman has said he expects at least one more rate hike in 2023. Now – there are only three Fed meetings left this year so the rate hike may not be this month – it may come in early November or December depending on what the market looks like.
And that market is complicated. The numbers show overall inflation – or headline inflation –has been coming down steadily since last year, but food prices are still high. The jobs market is still strong, jobs are still being created – albeit fewer than before – but more people are joining the workforce but also in august unemployment ticked up to 3.8%.
The Fed chair explained the reasons for America’s complicated economic picture and stubbornly high inflation – and it’s important to know – inflation is a global problem.
And where it’s headed – according to the Federal Reserve is down. The Fed chair fully expect inflation to get to the target rate of 2% even if they have to continue raising interest rates into next year. Even if that means the US economy slows down and more people lose their jobs.
The federal reserve will announce its interest rate decision on September 20th.
Watch the Federal Reserve Chairman’s full speech here.
