8-1-24 Inflation Drops Below Fed's 2% Goal, Signaling Weakening Economic Pressures

The Real Investment Show Podcast

Jerome Powell's presser was a snooze-fest, with the Fed's stance on interest rates remaining unchanged (at least they didn't hint of more rate hikes!) Markets also responded to clarifications on chip bans and performance reports from AMB & MSFT. The "AI is Dead" narrative is way too early; largest growth in data center construction is in the US. Rewards for beating earnings estimates have been mild. Managers have been "de-grossing" portfolios, will now revert to "grossing-up" holdings following earnings season. Powell says pricing and inflation pressures are "equal;" concerns now turn to employment, which is about at the level before the pandemic (Powell already has Friday's employment numbers). Fed is poised to cut rates in September. Lance and Michael discuss the latest inflation data and its implications for the economy; analysis of the recent drop in the inflation index to 1.5%, and the absence of significant wage growth pressures: Inflation index falls below the Fed's 2% target rate; inflationary pressures receding on various fronts; employment cost index slightly down; no substantial real wage growth pressures observed; year-over-year wage growth on the decline. Lance & Michael also discuss the bond market's bearishness; Are we out of the woods yet with bonds? This bear market is the longest since 1790! Economic slowdown and low inflation are driving yields down. The biggest problem facing Bonds is the deficit; Janet Yellen wants to keep rates as low as possible to better manage debt. Lance addresses Bond Yield question about holding to maturity. SEG-1: Markets Respond to Nothing New from the Fed SEG-2: Powell Presser: Price & Inflation Pressures Now Equal SEG-3: Is the Bear Market in Bonds Finally Over? SEG-4: Is the Treasury Manipulating Markets w Their Offerings? Hosted by RIA Advisors Chief Investment Strategist Lance Roberts, CIO, w Portfolio Manager Michael Lebowitz, CFA Produced by Brent Clanton, Executive Producer ------- Watch today's show video here: https://www.youtube.com/watch?v=N_fLAZCwJa8&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=4s ------- Articles mentioned in this report: "Is There Value In Small Cap Value Versus Large Cap Growth" https://realinvestmentadvice.com/interest-rates-are-too-is-there-value-in-small-cap-value-versus-large-cap-growth/ "Bullish Years Often Have Corrections" https://realinvestmentadvice.com/bullish-years-often-have-corrections/ "Pullback Doesn’t Deter Investor Bullishness" https://realinvestmentadvice.com/newsletter/ ------- The latest installment of our new feature, Before the Bell, "8-1-24 Market Bull Trend Remains Intact" is here: https://www.youtube.com/watch?v=79762x_wVdU&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1 ------- Our previous show is here: "Navigating Financial Freedom on Your Own Terms" https://www.youtube.com/watch?v=B31ZSUJGGJM&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=1s ------- Get more info & commentary: https://realinvestmentadvice.com/newsletter/ -------- SUBSCRIBE to The Real Investment Show here: http://www.youtube.com/c/TheRealInvestmentShow -------- Visit our Site: https://www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to SimpleVisor: https://www.simplevisor.com/register-new -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #JeromePowell #FederalReserve #InterestRates #2024Election #Inflation, #YearOverYear #FedTargetRate #InflationaryPressures #Receding #EmploymentCostIndex #RealWageGrowth #YearOverYearWageGrowth #PricePresure #BondMarket #BondYields #YieldCurveInversion #JanetYellen #Treasury #Markets #Money #Investing