Housing Market Challenges - Housing market is facing difficulties due to people being locked in their current homes because of high mortgage costs [1] - High interest rates are impacting the housing industry and its customers [2] - There is a national housing shortage [3] Monetary Policy Considerations - The primary goal is to bring inflation down sustainably to 2% and maintain it over a long period [1] - The Federal Reserve's (Fed) tool is for the entire US economy, not just housing [3] - The Fed considers the housing market when addressing interest rates [4] - The Fed focuses on the overall US economy, not any single sector [5] Future Outlook - Normalization in housing is expected as rates come down in the medium term [3]

Federal Reserve Policy & Interest Rates - Fed Chair Jay Powell indicated no rush to cut rates, refraining from pointing to any specific meeting for a potential rate cut, including July [2][3] - The market anticipates the Fed will cut rates this year if economic conditions, such as lower inflation or rising unemployment, warrant it, but the timing remains uncertain [7][12] - The majority on the committee still forecasts two rate cuts this year [12] Tariffs & Economic Impact - Tariffs' impact is expected to start showing up in economic data this month, potentially pushing up prices [4][9] - The effects of tariffs depend on their ultimate level and expectations, which reached a peak in April and have since declined [9] - The Fed is closely monitoring fiscal policy and its potential effects on the economy, refraining from commenting directly on the President's policies [8] Geopolitical Risks & Cease-fire - Geopolitical risks, including the fragile cease-fire between Israel and Iran, introduce uncertainty for policymakers [4][14] - The Fed is taking a cautious approach, monitoring geopolitical developments day by day, as the situation remains chaotic [15] - A fragile cease-fire has been reached between Israel and Iran [14][44] US Foreign Policy & International Relations - President Trump expressed frustration with perceived violations of the cease-fire by both Israel and Iran [23][44] - The US military action against Iranian nuclear facilities aimed to prevent Iran from developing a nuclear weapon [27][31] - The President is pushing NATO allies to increase defense spending, aiming for a 5% quota [19][93] New York City Mayoral Primary - Ranked-choice voting is in play for the Democratic mayoral primary, potentially leading to multiple rounds of tabulation [73][76] - Housing is a top issue for New York City voters, influencing the campaigns and their messaging [81] - Weather in New York City, with temperatures reaching 102 degrees Fahrenheit, could potentially affect voter turnout [73]

Well, KB Home cutting its revenue outlook for the year after reporting weak second quarter results. This is the housing market. It remains sluggish with existing home sales seeing their worst May since 2009.Joining me now, we've got Meredith Whitney, Meredith Whitney Advisory Group CEO. Meredith, good to have you back on Yahoo Finance with us. We we just heard remarks from Fed Chair Jerome Pal that he plans to keep rates on hold.So, what is the risk that that poses to the housing market. Well, the housing m ...

really, on that. We're not seeing it yet, but we. >> Gentleman's time has expired.>> Thank you. Chairman. >> Yield back.Thank you, Mr. . Chairman. The gentleman from new Jersey recognized for five minutes.>> Thank you, Mr. . Chairman. >> Chairman Powell, as a member of the Intelligence Committee, I'm deeply concerned about the threat of Iranian cyber attacks on our financial system as retaliation for our strikes on their nuclear facilities and its cyber security report.Last year, the fed acknowledged that c ...

The gentleman from Wisconsin, Mr. . Style, who's also the chair of our subcommittee on digital assets, financial technology, and artificial intelligence. You're recognized for five minutes.Thank you, Chairman Hill. Thank you, Chairman Powell, for being with us today. I want to dive into two actions the Fed's recently taken uh to get a little additional color on.Yesterday, uh the Fed announced uh that reputational risk would no longer be a component in bank exams. Uh I viewed that positively. I viewed u the ...

yield back. >> The gentleman's time has expired. The vice chairman of the full committee, Mr.. Huizenga of Michigan, is recognized for five minutes. >> Thank you, chair Hill and Chair Powell. Good to see you again.I got a lot to cover, so we're going to try and keep this concise. But following up a bit on what Chair Hill had been talking about, you know, you had said in January 29th, 2025, quote, we don't know what will happen with tariffs, with immigration, with fiscal policy and with regulatory policy. I ...

Group 1: Target Corporation - Target has faced significant challenges, with its stock down 64%, but it has a history of resilience, having paid and raised dividends for 53 consecutive years [4][5] - Current issues include declining sales due to inflation, high interest rates, tariff uncertainty, and a backlash from reduced diversity initiatives [5][6] - Target is implementing a management shakeup through a new Enterprise Acceleration Office to improve execution and plans to open approximately 300 new stores over the next decade [7][8] - The stock currently has a low price-to-earnings (P/E) ratio of 10.5 and offers a dividend yield of 4.7%, supported by a 60% dividend payout ratio [8] Group 2: PepsiCo - PepsiCo's stock is down 34%, facing challenges from tighter consumer finances and competition from store brands, as well as the impact of weight loss drugs on its product demand [9][10] - Despite these challenges, PepsiCo remains a resilient company with a diverse portfolio of brands and a manageable dividend payout ratio of 72% [10] - The company is adapting by acquiring healthier food and beverage brands and innovating with products like zero-sugar sodas [11] - PepsiCo's current dividend yield is 4.25%, and its P/E ratio has dropped to 19, below its 10-year average of 26, indicating potential for respectable growth moving forward [12]

Market Concerns & Inflation - Markets were initially concerned about the Middle East situation, particularly potential Strait of Hormuz closure or energy infrastructure damage, which could significantly increase inflation [1] - Oil prices potentially rising above $100 per barrel due to Strait closure could push inflation back above 5% and gas prices above $5 per gallon [2] - Easing Middle East tensions are causing oil prices to decline, suggesting a more positive inflation outlook and potentially allowing the Federal Reserve to lower interest rates [2][8] - Lower energy prices could offset some inflationary impact from tariffs [2] - Markets are currently more relieved by developments in Iran than concerned about upcoming tariffs [3] Federal Reserve & Tariffs - Federal Reserve Chair Powell is maintaining a "wait and see" approach regarding tariffs [4] - Recent economic data, including weaker economic surprise indexes, decelerating job growth, and friendly inflation prints, may be pushing the Federal Reserve towards easier monetary policy and another rate cut [5] - The final tariff terms, implementation, and pass-through to inflation are still unknown [6] - The debate now includes more voices on the dovish side, which is net bullish for investors [7] Market Sentiment - Market recovery is driven by optimism regarding no further escalation or potential resolution in the Middle East [8] - Lower energy prices are bullish for the markets [8] - Market pricing is heavily influenced by day-to-day news [9]

Key expectations M Idea Morgan Stanley & Co. LLC Michael T Gapen Chief US Economist Michael.Gapen@morganstanley.com +1 212 761-0571 Matthew Hornbach Strategist Matthew.Hornbach@morganstanley.com +1 212 761-1837 Jay Bacow Strategist Jay.Bacow@morganstanley.com +1 212 761-2647 Sam D Coffin Economist Sam.Coffin@morganstanley.com +1 212 761-4630 Diego Anzoategui Economist Diego.Anzoategui@morganstanley.com +1 212 761-8573 Lenoy Dujon US/Canada Economist Lenoy.Dujon@morganstanley.com +1 212 761-2779 Heather Berg ...

Federal Reserve Gov. Christopher Waller said that the central bank could cut interest rates as early as July, arguing that inflation under tariffs wouldn't likely be a problem. https://t.co/qZ7szHXuNO ...