Titanic Tragedy, Jerome Powell is Grilled & The Data Is Talking

Fed Chairman Jerome Powell has affirmed that more interest rate increases are likely ahead until additional progress is made on bringing down inflation. Speaking a week after FOMC officials decided for the first time in more than a year not to push rates higher, the central bank leader indicated that the move likely was just a brief respite rather than an indication that the Fed is done hiking.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.

They discuss a forecast by London-based research firm Capital Economics, indicating that US office buildings are unlikely to regain their peak pre-pandemic values until at least 2040 as demand for desk space weakens.

Chris and Saied look at a Labor Department report, stating that initial jobless claims held at 264,000 in the week ended June 17 after a slight upward revision to the previous week’s figures. This was above the median forecast of a survey of economists, who estimated 259,000 new claims.

They also offer some thoughts on data from  S3 Partners LLC, showing that total US short interest, or the amount traders have spent betting against US equities, exceeded $1 trillion this month as the S&P 500 Index extended its advance. The tally reached the highest since April 2022 before retreating slightly with stocks down for a third straight day.

Join Chris and Saied for this fascinating and informative conversation.

Enjoy!

What You’ll Learn in this Show:

• Why the FOMC has never explained the reasoning behind the four separate 75-point rate increases.
• Why housing makes up the largest component of the COnsumer Price Index (CPI) report.
• The definition of a bull market.
• And so much more...

Resources:

"Senator Elizabeth Warren pressures Federal Reserve Chair Jerome Powell on the SVB and FirstRepublic bank failures" (Bloomberg via Instagram)

"Higher Interest Rates Hit Home Prices Again" (The Wall Street Journal)

"Powell expects more Fed rate hikes ahead as inflation fight ‘has a long way to go’" (CNBC)

"Fed Chair Powell says smaller banks likely will be exempt from higher capital requirements" (CNBC)

"US Office Owners Get Dire Warning: Rebound Unlikely Before 2040" (Bloomberg)

"US Jobless Claims Hold at Highest Level Since October 2021" (Bloomberg)

"Short Bets on US Stocks Hit $1 Trillion, Most Since April 2022" (Bloomberg)

"Existing Home Sales Unexpectedly Improve in May Amid Multi-Family Gains" (MSN)