Monetary Policy & Market Impact - The Federal Reserve announced a 25 basis point rate cut, bringing the Federal Funds rate down to 350-375% [2] - The Federal Reserve will restart balance sheet expansion with $40 billion in monthly Treasury bill buys, signaling a return to quantitative easing (QE) [3] - QE is expected to push bond yields down, encouraging investors to move into riskier assets, making borrowing cheaper and boosting confidence across financial markets [7] - Historically, QE has inflated financial assets, potentially benefiting stocks, Bitcoin, digital assets, and real estate [8][12] - The US dollar is expected to weaken with QE, while short-term cash-like investments may become less attractive [10] Economic Outlook & Risks - Multiple deflationary forces, including AI, robotics, tariffs, and increased deportations, could challenge the Fed's monetary policy [6] - Despite rate cuts and QE, the housing market remains constrained by low supply and existing low-rate mortgages [23] - Treasury Secretary confirmed approximately $100-150 billion in tax refunds are expected in 2026, potentially boosting GDP growth [16][20] Housing Market Analysis - The housing market is described as "broken" due to high prices and affordability issues [21] - Deregulation at the local level to allow more housing construction is suggested as a solution to the housing shortage [27]

There's a lot of big institutions that might even be behind some of this sell-off that want to drive it lower because they want to get in. I think there's huge institutional big money demand to buy Bitcoin. It's just waiting to pounce. And so once that pounce happens, we're going to be at 150. I still think, and the last time I was on, I said I think we'll be at 150 by the end of February. I hate to do it, but facts change, I got to change. I'm going to back it up just a little bit and say I think we'll be ...

situation is is that our two goals are a bit in tension, right. So, um, interestingly, everyone around the table at the FOMC agrees that inflation is too high and that we want it to come down and agrees that the labor market has softened and that there's further risk. Everyone agrees on that.where the where the difference is is how do you weight those risks and what does your forecast look like and and and where do ultimately ultim where do you think the bigger risk is and and you know it's very unusual to ...

The president said at a lot of times in your home state the other evening that affordability is a Democrat hoax. Are you involved in some sort of conspiracy here. What is you referring to.Well, often I am bewildered by what exactly the president says. He says the problem is that too many kids have 37 pencils. I can assure you I don't have 37 pencils.Neither does my daughter. You know, this president really was elected more than any other reason, as you kind of referred to just a few moments ago. He was elec ...

Core Viewpoint - The Federal Reserve's decision to lower interest rates is expected to influence market dynamics, potentially leading to an increase in the 10-year yield as it approaches the lower bound of neutral rates [1] Group 1: Market Reaction - Lauren Goodwin, Chief Market Strategist at New York Life Investments, suggests that the market may react negatively to further rate cuts, indicating a threshold where the 10-year yield could rise [1] - The discussion on Bloomberg Businessweek Daily highlights the implications of the Fed's decision on market sentiment and future interest rate expectations [1] Group 2: Inflation and Future Fed Policy - The potential impact of inflation on the Federal Reserve's policy decisions is a key topic, with projections extending to 2026 [1] - Goodwin emphasizes the importance of monitoring inflation trends as they could significantly influence the Fed's actions in the coming years [1]

Core Viewpoint - Tension exists between the Federal Reserve's goals of controlling inflation and supporting the job market, leading to a cautious approach in interest rate decisions as inflation remains high and the job market shows signs of weakness [1] Interest Rate Decisions - The Federal Reserve cut interest rates by 0.25% as expected, but there were dissenting opinions within the committee, indicating differing views on the necessity of further cuts [2][4] - The Fed has cumulatively cut rates by 1.75 percentage points since September 2024, with current rates in the target range of 3.25% to 3.5%, still above pre-pandemic levels [5][19] - The Fed is expected to pause further cuts in January, with forecasts suggesting only one additional cut next year, contrasting with some analysts predicting two cuts [6][7] Economic Indicators - The natural rate of interest is believed to be closer to pre-pandemic levels, influenced by demographic trends and economic growth rates [9][20] - The housing market continues to weaken despite rate cuts, indicating potential need for further cuts to support this sector [10] - The lack of recent GDP data creates uncertainty in assessing the overall economic picture, with expectations for updates once Q3 data is available [11][12] Inflation and Tariff Policies - Factors that could lead to more aggressive rate cuts include a significant downturn in the AI sector, which has been a major contributor to GDP growth [12] - Tariff policies present a risk for inflation; if businesses pass on tariff costs to consumers, it could increase inflationary pressures, complicating the Fed's monetary policy [13][14] Neutral Interest Rate - The neutral interest rate is crucial for balancing full employment and inflation at the Fed's 2% target, with current rates slightly above the estimated neutral level of around 3% [15][19] - The neutral rate has trended down over decades, influenced by demographic changes and economic growth, suggesting that the Fed's long-term rate setting will align with this metric [21][22]

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Inflation accelerated for the third straight month in Argentina even after President Javier Milei’s midterm victory as beef, transport and energy prices rose https://t.co/wsc1r91d0Q ...

Economic Indicators and COLA - Lower interest rates may indicate a stabilizing economy, but inflation remains stubborn, impacting cost of living adjustments (COLA) for seniors [1][2] - The Social Security Administration (SSA) bases COLA on the consumer price index (CPI), which measures rising prices affecting seniors [2][3] - The SSA's October announcement of COLA is crucial for seniors, as it determines the increase in their monthly checks for the upcoming year [3][4] Bond Yields and Inflation Expectations - Recent declines in bond yields, such as the one-year U.S. Treasury yielding around 3.63%, suggest moderated inflation expectations, although not as dramatically as earlier [6] - The Federal Reserve's projections indicate PCE inflation rates of 2.9% for 2025, 2.4% for 2026, and 2.1% for 2027, influencing future COLA adjustments [7] - The anticipated COLA for 2026 is 2.8%, slightly higher than 2025's 2.5%, with projections for 2027 potentially in the 2.3-2.6% range depending on CPI data [7] Impact of Rate Cuts on Retirees - Federal Reserve rate cuts can stimulate the economy, benefiting stock and bond values, and reducing costs for homebuyers and reverse mortgages [9][10] - Retirees relying on interest income from savings accounts and CDs may see a decline in earnings, but bond investments could increase in value as yields decline [11] - Lower inflation expectations could lead to smaller annual increases in Social Security payments, prompting seniors to seek additional income sources [12][13] Monitoring Future Trends - The market is currently pricing in moderately elevated inflation expectations, with the Fed signaling only one additional rate cut in 2026 [13] - Persistent inflation pressures in housing and services may keep COLAs in the 2-3% range, necessitating adjustments in retirement strategies [13]

Core Insights - Copper prices reached a record high of $11,906 per ton, driven by a Federal Reserve interest rate cut and an upgraded growth forecast for the US economy [2][3] - The Fed's new growth projection for the US economy is 2.3% for next year, an increase from the previous estimate of 1.8%, with inflation expected to slow to 2.4% [3] - The positive outlook for the US economy is expected to enhance demand for industrial metals, despite a recent decline in Chinese copper consumption [4] Industry Summary - Copper has increased nearly 35% this year, influenced by mine disruptions and anticipated shortages outside the US, as traders prepare for potential tariffs [5] - The renewable energy sector is driving long-term demand for copper, contributing to its price rally [5] - Other industrial metals also saw price increases, with tin rising 4.4% to $41,751 per ton and zinc jumping 3.9% [5]