The Fed Just Confirmed It: Americans Are Poorer In 2024

"the Federal Reserve Bank has said that they want to cut interest rates this September."

"in anticipation of the Federal Reserve Bank cutting interest rates, we've already seen mortgage rates fall. ... we just saw a boom in refinancing applications. Week over week, we saw refinancing applications, mortgage refinancing applications jump by 16%."

"And so now as we see refinancing rates drop or refinancing rates jump because mortgage rates have been falling, it poses an interesting dynamic because one thing that I'm going to keep my eye on is how that will affect spending and if that impacts inflation at all."

"if we do see interest rates stop start to drop, how will that affect the economy? How will that affect spending? And how will that affect what the Federal Reserve Bank does?"

"if inflation comes down, which is what we've been seeing happen while the economy still is growing, because if more people start spending money and we start to see more economic growth again, well, maybe the Federal Reserve Bank won't need to be as aggressive to cut interest rates"

"A lower interest rate means well, if you're sitting on cash, your cash is losing value. You're going to want to dump the cash into assets. Lower interest rates generally mean asset prices rise. Lower interest rates generally mean that inflation goes higher."

"the Federal Reserve Bank doesn't want to trigger another inflation spike by cutting interest rates too soon."