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Inflation, Stock, Reuters, Stock market The Fed JUST Issued an Inflation Warning!

They said that the economy is recovering, but they’re also worried about inflation, because inflation is worse than what they thought it was going to be. Second, they talked about pulling back some of the stimulus measures and potentially raising interest rates and third, they talked about how the stock market could potentially crash if they pull back their stimulus measures. So they’re trying to figure out how to do that. So let’s talk about what’s, going on what’s up everybody i’m just putting singh from the minoritymaster.com where money minds, rethink rich. The federal reserve bank just had a very crucial meeting talking about the economy, talking about inflation, talking about asset prices and talking about the stimulus that the federal reserve bank is providing because, right now, the federal reserve bank is still injecting about 120 billion dollars into our Markets every single month to keep our markets afloat and now they’re talking about turning off this free money. Now, if you really want to understand what’s going on why this matters and how this affects the economy and your wallet, you first got to understand the federal reserve bank, because the federal reserve bank is known as the central banking system of the united states and they Essentially, are in charge of controlling our monetary supply. The other thing that you want to know kind of the flip side of that is that the federal reserve bank is not federal. They say so on their website: they’re, not a reserve because they don’t keep cash reserves in their vault somewhere and they’re.

Also not a bank, because you and i cannot go to a federal reserve bank office to go and deposit money. The federal reserve bank is a private entity that works with the united states government and they are in charge of controlling interest rates. They are in charge of printing money and they’re in charge of our monetary supply, so they have a pretty big impact on our economy and the value of our dollars and the money that you can go and borrow from banks. The federal reserve bank works directly with the united states government and they are in charge of controlling our interest rates. They work with the government to print money and they work with the government to control our monetary supply. So the federal reserve bank has a huge influence on our economy on the value of our dollars and our monetary system. Now that we’re done with the background session let’s go into what’s, going on right now with the federal reserve bank and what they plan on doing. But before we get into that, i need you to do me, a quick favor and smash that thumbs up button below and if you haven’t already be sure to join our brand new free discord server that we call the guac talk server because, as we all know, Extra guac is truly a symbol of wealth on our server on our community. You can chat about the stock market, the real estate market, cryptocurrency and all things building wealth.

This community is completely free and there’s a place where you can chat and hang out with other minority minor thinkers. So if you haven’t already, you can join our discord server by clicking the link in the description below so the first thing, the federal reserve bank said, is that because our economy is growing faster than expected, they want to stop printing so much money that way they Can control inflation right now the federal reserve bank is printing, something like 120 billion dollars every single month and injecting this money into our markets to keep our stock market and our markets afloat and what’s. Interesting about this is the federal reserve bank says that the reason why they want to stop printing this money is because our economy is growing faster than expected, but then they go on and talk about all the concerns that they have about inflation and all the concerns That they have about the economy and a high unemployment rate. I can’t say this for sure, but what it really sounds like to me is the federal reserve bank doesn’t want to scare anybody, but it sounds like they’re kind of worried about inflation, so they want to stop printing so much money that way they can kind of Slow, this inflation down so back when the pandemic first hit. You might remember that the stock market was in free fall. We saw one of the fastest stock market crashes in history, because people started selling all their assets and everybody was scared about what was going on in the economy that’s.

When the federal reserve bank came out and they said that they would start essentially buying an unlimited amount of assets and bonds from the stock market and for the first time in history, the federal reserve bank also said that they would be buying these bonds directly from Corporations to help prop up the market, and so essentially what the federal reserve bank did was they bailed out the stock market. They opened up this free money pipe and then they just flowed this money into the markets, and this helped prop up the market. Because then, banks and institutions saw that even if their assets were falling, they would be okay, because the federal reserve bank would be buying these losing assets. And after that started to taper off what the federal reserve bank did was. They created the system where they would inject about 120 billion dollars a month into the markets to buy a bonds to buy up treasuries. This way, there’s more money flowing into our economy that way there’s more money flowing into the markets, and this kind of helps keep the stock market afloat because it keeps a lot of money coming into our markets. Essentially, what all this means is that, back in 2020, the federal reserve bank started printing, an insane amount of money to bail out the stock market and they’re still bailing out the stock market and now they’re thinking about stopping that. What the federal reserve bank is saying is quote as a matter of prudent planning.

It was important to be well positioned to reduce the pace of asset purchases, in other words, to reduce the pace of all this money, printing and buying things in the market to slow that down, if appropriate, in response to the unexpected economic developments, including faster than anticipated Progress, so what is this faster than anticipated progress that the federal reserve bank is seeing? Well? First, is inflation we’re, seeing faster inflation and higher inflation that the federal reserve bank predicted and second according to them here? Is employment goals or the risk of undesirable levels of inflation sounds like a good thing right racing faster than anticipated progress? Well, it depends on what that faster, anticipated progress is because, according to the federal reserve bank, the faster the anticipated progress that we’re seeing is with undesirable levels of inflation or asset bubbles, meaning we’re seeing way faster inflation than they anticipated. So inflation is when the value of our dollars drop, which means now, if you want to go out and buy something you’re going to need more dollars, because your dollars just aren’t as strong as they were before, and the way that you see inflation kind of goes Down to supply and demand, if you have a bigger supply of dollars out there, the value of each dollar that you have isn’t worth as much and so now you need more dollars to go out and buy things, and so when you’re, printing more money, especially on A thin air well now you’re just increasing the supply of dollars, and this increase in supply of dollars dilutes the value of the money that we have so the value of your savings, the value of the money that you’re working so hard to earn these dollars get Diluted so now, when you want to go shopping or when you want to go on a vacation or when you want to go out and go eat at a restaurant it’s going to cost you more money, because the value of each dollar that you have isn’t worth As much so, you need more money to pay for all these things.

Between 2020 and 2021, we saw trillions of dollars of new money printed and injected into our economy. These trillions of dollars worth of money were used to fund stimulus checks that were used to fund relief programs and they were used to fund the stock market bailouts and these stock market bailouts are continuing to happen because the federal reserve bank is continuing to print money. To buy bonds and to buy treasuries and this money printing is now starting to worry the fed, because they’re worried about the inflation that we’re seeing happen. So if you’ve been subscribed to our youtube channel, you’ve heard me talk about kind of what’s been going on and up until now, the federal reserve bank has kept saying that the inflation that we’re seeing is transitory, meaning it’s temporary, because a lot of the inflation that We’Re, seeing isn’t just inflation it’s because of the supply and demand issues, because this pandemic caused issues in our economic system and because of these supply and demand issues. We have all this demand for people wanting to buy things and we have a small supply of things out there, which is pushing the price of things up well now, it’s getting a little bit interesting because you’re starting to see kind of a change in tone by The federal reserve bank, what they’re saying is that the federal reserve bank still expects that these recent surges inflation are still temporary because of this pandemic caused by supply and demand issues.

But some federal reserve bank officials are starting to change their tone and they’re saying that inflation quote might rise to inappropriate levels if elevated inflation readings persist so pretty much across the board in our economy. What we’ve seen happen is that in 2020, in the early part of 2021, everybody was cooped up in their homes. Everybody was getting money either from the government or they continue to work, and so people were building up savings for the first time in history and then in 2021. When the economy started to open, everybody started to go out, they started to spend money, they’re starting to travel, and so they want to go out and enjoy life and companies and the economy isn’t ready for that, like we’re, starting to see a lot of supply chain Issues where companies are not able to get products they’re not able to produce products, and because of that you have a limited inventory of stuff available out there, and lots of people have cash that they want to spend and they’re going out and spending this money. So you have all this demand a limited supply and all these things are pushing the price of things up. In addition to all the inflation that we’ve been seeing now, the federal reserve bank is getting a little bit worried. They still say that this inflation, this massive inflation that we’ve been seeing, is temporary, but they are getting concerned because if we don’t see the price of things start to come down really soon, then these high inflation measures could have a really kind of negative effect on Our economy, so this is the issue the federal reserve bank is getting worried about inflation, they’re also worried about the economy, because we still have a lot of people unemployed.

Now the question is: what do you do about it? Well, this brings us a little bit deeper into this article, because what the federal reserve bank first said is we need to start raising interest rates. Interest rates are a very easy way to control their monetary supply, because when you have lower interest rates, people will go out and borrow more money. I mean you saw this happen in 2020 and 2021 as soon as interest rates fell, so did mortgage rates when mortgage rates fell, everybody wanted to go out and refinance their home. Everybody wanted to do a cash out refinance and everybody wanted to go out and buy a new home when people are going out and taking on your mortgages, now you’re, creating more money, and this money is being injected into our economy in this time, in the form Of real estate, but more money is being printed and created and lend out and is being injected into our economy. So as interest rates fall, people are more likely to go out and borrow money and spend this money. When interest rates go up now, borrowing money gets more expensive and you don’t see people borrow money as much because now it’s more expensive for you to go out and borrow money and up until just recently the federalists have been kept saying time and time again that They wanted to keep interest rates near zero through 2023 to encourage people to go and borrow money, because this would inject more money into the economy.

But now because of these inflation worries, the federal reserve bank wants to kind of slow that down and they’re talking about. Potentially, raising rates sooner so, if you raise interest rates, people are going to be less likely to go out and borrow money which would slow how much money is being injected into our economy. And what this article says now is that 7 out of 18 federal reserve bank officials are expecting to raise interest rates next year in 2022 to put that in context in march of 2021. Just a few months ago, almost every single federal reserve bank official expected to keep interest rates near zero through 2023. So you’re really starting to see a change in tone by the federal reserve bank and you’re, starting to see that people are getting worried about our economy and about inflation, which is just beginning to change the way that they act for our economy. This next paragraph is kind of funny all of you money, nerds out. There might get a kick out of this, because what it says is that the federal reserve officials expected a short term burst in inflation, because our economy is struggling and because we’re seeing the supply and demand issues along with the money printing that we’ve been seeing. But this spread of inflation that we saw is much stronger and broader than what federal reserve officials expected. In other words, the federal reserve bank predicted that we would see a burst in inflation as soon as the economy opened, but they didn’t expect it to be anywhere near as bad as what we’re seeing right now, good thing, we got smart people in charge of our Money so now this brings me to the second solution, which is potentially stopping printing all this money.

The interesting thing about this is the federal reserve bank said they are now considering stopping the money printer, but what they’re concerned about is a stock market crash now before i get into what they said about this money printing and what they want to do about it. I do want to let you know that if you are interested in learning more about financial education and managing your money and building your wealth and investing your money, the right way, our team has put together an amazing guide that walks you through. Managing your money and investing your money to build your wealth, this guide is completely free when you sign up for our daily newsletter. So if you want to read this guide and start building your financial education, i got the link to how you can download this guide. For free in the description below so the last time we saw the federal reserve bank print massive amounts of money in bailout. The stock market was after the 2008 crash, and when that happened, we saw something similar where the federal reserve bank was buying assets to boost up the markets and then in 2013, when the federal reserve bank came out and they said that they were going to taper Off some of these asset purchases, we saw a small stock market correction. This type of stock market correction apparently has a term named after it is called quote the taper tantrum, because when investors get worried about the veterinary bank tapering their money printing, they start selling, and this is what the federal reserve bank is trying to avoid.

They don’t want to see an asset crash because they printed so much money to boost up the stock market, to boost up markets to prevent the stock market crash and now, if they stop printing money – and they see a stock market crash, they’d be kind of sad. This is where the federal reserve bank has given us a lot of unanswered questions, because what they said is that, yes, they are thinking about how to kind of stop this money printer, but they’re, not sure how and they’re not share win. All we know is that the federal reserve bank is finally thinking about turning up the money. Printer but they’re also worried about a potential stock market crash, and then they coupled this with the fact that they’re still kind of concerned about the economy, because, according to this article, we have 7.6 million more people out of my job today than before the pandemic started. So we clearly have some bigger economic issues on our hands, because we have a lot of people out of a job. We have a lot of people that are not working and we still have unemployment benefits going on to a lot of people, and so, if we really want to see our economy recover, we need people to go back to work and it’s kind of hard. When, right now, the federal reserve bank is working really hard to just boost up the stock market with free money and they’re scared about not doing that, because they’re scared about how that’s going to affect our economy and the markets.

The article says it right here: i’ll read it for you word for word. It says: policy makers have sounded less confident in recent weeks that the economy can recover all the jobs lost amid the pandemic, without spurring inflation. I mean this is kind of a really weird situation, because we keep hearing more and more concerns about inflation and how we can affect our economy over the long term. And how can you cure inflation? Well, one you’re going to stop the money printer and two you’re going to have to raise interest rates. But they don’t want to raise interest rates right now, because they’re worried about how they can affect the economy and how it can affect home sales. And how can affect businesses – and they don’t – want to stop this money printing, because they’re worried about a potential stock market crash. So, instead the federal reserve bank says they’re gon na try to wait it out and see what happens on one hand, you hear all these worries about inflation and then, on the second hand, you hear the federal reserve bank talking about things that they would like to Do but no real action being taken. This is exactly why financial education is so important because who does inflation hurt the most well, it hurts the people who are not financially educated. It hurts the consumers, because now, if you’re, just making money from your job and all you’re doing is going to the store and spending money well, now it’s going to cost.

You way more money to buy things now and in the future and so you’re the person that has to pay the price versus if you’re, financially educated. If you’re an investor, you got the federal reserve bank behind you. That is scared to stop bailing you out. If you enjoyed this video here’s a video on how to build wealth by investing your money, that i think you’ll love and while you’re at it download a free money, management, pdf and, as always, keep hustling well in general.

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Written by freotech

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