Could Powell's Fed trigger a crash like 2008? McDowell warns

Economic Overview - Inflation in the U.S. increased in August to the fastest pace in 7 months, raising concerns about the Federal Reserve's upcoming interest rate decision [1] - Jobless claims have spiked to a four-year high, indicating potential weaknesses in the labor market [1] Inflation Insights - The Consumer Price Index (CPI) data met expectations, with used car prices rising by 6%, which some analysts view positively as it indicates asset value appreciation [2][3] - Housing prices continue to rise, but certain markets like Austin, Miami, and Tampa are experiencing price declines, suggesting a potential stall in housing inflation [5] Federal Reserve's Strategy - The Federal Reserve may shift focus from fighting inflation to addressing unemployment, with a new target inflation rate of 3% instead of 2% [6] - There is speculation about multiple rate cuts in the near future, with predictions of up to four cuts by January [9][11] Asset Prices and Market Dynamics - Despite inflation concerns, asset prices, including stocks and housing, are perceived as overvalued relative to earnings, raising fears of a potential bubble [7][8] - The stock market's reaction to inflation data suggests that investors are more concerned about the deteriorating job market than inflation spikes [5] AI and Technology Sector - The growth of AI is seen as a significant driver for companies like Oracle, with expectations of substantial earnings growth due to increased demand for cloud services and data [12][16] - Some analysts argue that current valuations in the AI sector may not reflect the true growth potential, indicating a possible undervaluation of key players [14][15]