The U.S. Interest Rate Problem Just Flipped (Jerome Powell Changes Stance)

Jerome Powell has recently admitted that The Federal Reserve is not satisfied with current levels of inflation and is thus changing their plan for monetary policy. Instead of three rate cuts, the Fed will now hold rates as they are until they see improvements in inflation.

★ ★ LEARN TO INVEST ★ ★
Get started investing on the right foot with our step-by-step investing courses:

★ ★ CONTENTS ★ ★
0:00 The Fed Flips on Monetary Policy
2:30 Berkshire Bonanza Announcement!
3:25 Was It Really a Shock?
5:00 The Fed's Dual Mandate
6:30 Is it the Fed's Fault?
8:50 Howard Marks' Prediction is Coming True
10:20 Does this all matter?

Note: I do not have the ability to answer all emails, but know that each email is read. If enquiring about sponsorship, New Money is currently only seeking sponsorship from established brands.

[NewMoneyYouTube]

Hopefully things don’t get too hectic in Omaha. Do any of you guys live close? How are conditions looking? Hoping you and all of your families are safe!

[Patriciabanks]

Rate cuts commence in June 2024, taking 6-8 months to complete. A potential crash, if any, might occur by March 2025. The soft landing narrative is gaining traction, making this big recession everyone is calling for less likely. With $1 million from a business sale, I'm seeking profitable investment opportunities for the next 3 years.

[Riggsnic_co]

I see the rising interest rate as a very big problem, as more investors will definitely pull out more money from the Stock market. This might have worked when I was still invest-ing with a couple thousand dollars, but it is more difficult now to decide whether to pull out more than $365k from my port-folio. I know some inves-tors still make that despite the strong bear market. In wish I could pull that feat

[austinbar]

Increasing interest rates will probably result in an increase in bank failures as their treasuries and commercial paper lose value. An interest rate freeze must be put in place to stop a serious economic downturn. In order to reduce fuel prices, the White House should also aid the industry in increasing petrol and oil output. The anti-oil stance just drives up energy prices, which causes inflation across the economy. The economy will prosper and inflation will decline if interest rates are lowered, the money supply is constrained, government spending is decreased, and more affordable fuel is made available. Unfortunately, a number of competing agendas make it unlikely that all of these steps will be put into action, which will cause a recession and ongoing inflation.

[KristinPMosher]

In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.

[OnlySteven]

Market declines, soaring inflation, a significant increase in interest rates by the Fed, and rising Treasury yields all point to additional losses for portfolios this quarter. How can I profit from the present market turbulence? I'm still debating whether to sell my $125k ETF/Growth Stock portfolio.

[BrettaANordsiek]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement of about $150k. I want to know: Do I keep contributing to my portfolio in these unstable markets, or do I look into alternative sectors?

[fnkgtxl]

This seems like the worst period.
Even the market are now very unpredictable. Started investing recently when the market prices were a bit high, today I am more than 60% down!

[simone_maya]

my husband for past 30 years has always been self managed and owns 3 shares of Berkshire Hathaway Class A stock (BRK:A) which he bought in at about $17, 000 during the mid 90s, we are currently liquidating some of these positions to incoporate new Gen. Stocks, but am we better off re-investing into Gold as it seems stocks are a little too unstable right now.

[asharhakim]

Labor market is strong because everyone gotta work two jobs to keep up with inflation, it’s a circular argument

[kkybaggy]

While this provide an actual strategy on investing and how to value stocks. After buying stocks for just over 3 years, i'm struggling to make gains. How do i adjust or revamp my 250k portfolio? Should i consider some defensive investments?

[benitabussell]

Investor skepticism surrounds the Fed's plan to maintain interest rates until inflation stabilizes. Personally, I'm unsure about investing $150k in my stock portfolio. I seek advice on the optimal strategy for navigating this market.

[jonathantaylor]

No way the FED can cut. My dogs bag of dog food just went up by 19.2%. That sort of price hike would be unheard of several years ago. The more I thought about it dog food is actually a good indicator for inflation. It has several inputs of different grains and proteins (meats) has to be manufactured (usually domestically) and it's heavy and bulky to ship. So it takes into account several different commodities, labor and shipping/distribution cost.

[jyxcouz]

Good no rate cuts. I need the market to crash.

[koset]

Your analysis is very useful to me. Your channel is one of my favorites. Thanks.

😊

[siksik]

They keep printing and sending it abroad by the billions but certainly that doesn't influence inflation.

[misterbeach]

Isn't the Fed's decision based on the experience in the 1970s? The Fed cut interest rates back then too soon, multiple times. Inflation went up again; they reacted with even higher interest rates, with interest rates skyrocketing eventually up to 20 %, if I recall correctly.

[dennisb]

Great video plane n simple approach to getting interest rates n inflation rates at a comfortable level

[lancewig]

Some great articulations on this video. I always enjoy the content.

[dixter]

we need to see the 10yr bonds go to at least 6% or higher....