Romania’s policymakers are poised to keep interest rates unchanged at their last meeting of a year that was marked by a political crisis and market turbulence https://t.co/SJIZK9ky27 ...

Monetary Policy & Inflation - The Fed's 2% inflation target is considered by some to be above the original dual mandate, with a zero percent target preferred for pure price stability [2] - The Fed aims for stable inflation, but its track record in achieving this is questionable [3] - A little bit of deflation is considered a natural part of economic development due to technological and productivity improvements [6] - Current inflation measures, such as the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) indicator, may not accurately reflect the price inflation experienced by average American families [8] - The Fed's deliberate debasement of purchasing power necessitates inflation adjustments, creating confusion [9] Interest Rates & Economic Impact - The Fed's method of curbing inflation by restricting growth is questioned, particularly its reliance on Keynesian models that ignore the impact of lower taxes and less regulation on increasing supply [12][13] - High interest rates restrict access to capital, hindering real prosperity gained through the production of goods and services [15][21] - The Fed's actions empower the government at the expense of the private sector, especially small and medium-sized businesses [14] - Lowering rates is suggested to stimulate small business hiring by improving access to capital [21] Fiscal Policy & Government - Perpetual deficit spending is viewed as immoral and corrupt, creating purchasing power based on future, unproduced goods and services [16] - A balanced budget is crucial, and the inability to manage government finances is demoralizing [22][23] Alternative Monetary Solutions - A proposal suggests Treasury should issue a gold-backed long-term bond to compensate for losses in purchasing power, potentially competing with assets like Bitcoin [17] - Relinking the dollar to gold could be a cost-effective way for the government to borrow and signal a move towards sound finances [19][20]

Brazil’s annual inflation slowed more than expected in October, as high interest rates begin to cool prices in Latin America’s biggest economy https://t.co/KzJIiQV2gr ...

Bank of England policymaker Megan Greene signaled she continues to back keeping interest rates on hold, despite figures showing UK unemployment climbing to its highest rate since the pandemic https://t.co/XEGNL7hKuC ...

Group 1 - Investing in long duration bonds is favorable when interest rates are declining, but the current rate environment is volatile since the last Fed meeting [1] - There is an opportunity to secure high short-term yields amidst the fluctuating interest rates [1] Group 2 - The article emphasizes the importance of informed decision-making in finance, aiming to empower readers with insights and analysis [1]

I want to talk about the top issue for voters in last week's election and I would say most elections, the economy, affordability, and housing. Now, for millions of Americans, buying a home is financially out of reach. Today, this number might surprise you.The average age of a firsttime home buyer is a record high, 40 years old. That is why President Trump says he is proposing what his administration is calling quote a complete gamecher. A 50-year fixed rate mortgage.So, what does that actually mean for you. ...

Housing Market & Affordability - The average age of a first-time home buyer is a record high of 40 years old [1] - A proposed 50-year fixed-rate mortgage could lower monthly payments by approximately $200, but could result in paying as much as double in interest [1][3] - With a 6% interest rate on a $400,000 home, using a 50-year mortgage instead of a 30-year mortgage could result in paying $320,000 more over the life of the mortgage [3][4] - The core issue is a housing supply problem, with not enough homes for the number of people who want to buy them [4] - Tariffs are making home building more expensive, exacerbating the affordability issue [2][6] Economic Proposals & Fiscal Policy - A proposal to give Americans $2,000 checks, funded by tariff revenue, is being considered [7] - $2,000 checks for every American would cost approximately $600 billion [9] - Tariff revenue is also supposed to be used to pay down debt and bail out farmers, creating a conflict in resource allocation [10] - The Supreme Court might strike down the tariffs, potentially requiring most of the tariff revenue to be refunded [11] - The administration is accused of quietly providing tax relief to private equity firms, crypto companies, foreign real estate investors, insurance providers, and multinational corporations [15] Voter Sentiment & Economic Discontent - Voters are deeply unhappy about the state of the economy [17] - People are frustrated about costs being higher today than they were 5 years ago, even if they are making more money [20] - Tariffs are considered a tax on the American people [21]

GLOBAL HEAD BANK OF BANKING AT UBS AND COHEAD OF THE BUSINESS IN AUSTRALIA AND NEW ZEALAND. I WANT TO PICK UP ON A POINT THAT AVERILL WAS MAKING ABOUT GOOD CONSUMER CONFIDENCE NUMBERS WE'VE HAD, HIGHEST IN NOVEMBER. IT GOES TO WHAT WE'VE HEARD FROM THREE OF THE BIG BANKS LAST WEEK.THEY ARE ALL SOUNDING UPBEAT ABOUT CREDIT QUALITY, BUSINESS CONFIDENCE AND THE CONSUMER SECTOR AS WELL. IS THAT THE WAY HE WOULD CHARACTERIZE THE AUSTRALIAN ECONOMY AT THE MOMENT. FROM AN ECONOMIC PERSPECTIVE, YES.WE HAVE SEEN IF ...

Markets are rallying, but this Wall Street pro warns it’s the speed of rate moves that matters… In this episode of Stocks in Translation, Computer Trading Corporation CEO and President Peter Borish joins host Jared Blikre and Senior Reporter Allie Canal to unpack interest rates in today’s economy. While the bull market continues to rally, Borish’s eyes remain on interest rates. He shares that it’s not the level of rates that matters, but the rate of change. From rising gold (GC=F) and silver (SI=F) prices, ...

Economic Outlook - The economy has been resilient, with growth around 18% [2] - The labor market is near full employment but cooling, with both demand and supply decreasing [2][13] - Inflation is closer to 3% than the 2% target [2] - Consumption remains resilient, driven by wealth effects for higher-income households and increased debt for lower-income households [6][7] Consumer Finances - Consumer balance sheets are generally okay, but there was an increase in subprime loan and credit card defaults over the past year, which has since stabilized [8][9] - Lower-income consumers are increasingly using credit card debt to maintain consumption [7] - Many people are having more month than money, with increased visits to food pantries and requests for utility assistance [27] Company Concerns - Companies report that uncertainty has plateaued, allowing them to operate with a higher level of uncertainty [11] - Companies are experiencing higher costs, including those related to tariffs and insurance [11] - Companies closer to the consumer are having difficulty passing on costs due to pushback from buyers [12][13] - Companies are more concerned about non-interest costs, such as raw material and insurance costs, than interest costs [21] Labor Market - The labor market is cooling in an orderly way, with both supply and demand decreasing [13] - Compensation growth is reported to be between 35% and 4% [6] - Layoff announcements have been made, but weekly claims remain stable [13][14] Monetary Policy - Monetary policy is somewhere between modestly restrictive and neutral, closer to neutral [26] - The real federal funds rate is around 1%, which is the long-run neutral rate [26] - In the past year, the real federal funds rate has declined by 250 basis points, with 150 basis points from nominal interest rate reductions and 100 basis points from rising expected inflation due to tariffs [19] - There is limited room to ease policy further without it becoming overly accommodative [24][25] - It is important to bring inflation back towards 2% to allow households to catch up with their real incomes [28] Asset Prices - Financial conditions are very accommodative, and asset valuations are notable [29] - House prices and stock prices seem elevated relative to historical standards [30]