The Fed Forcing 1.2 Million Jobs Lost in 2023 | Prepare Now

TL;DR

The Fed's goals, as expressed through their projections, are to decrease inflation and increase unemployment. This could lead to economic slowdown and job losses.

Transcript

hey bowtie Nation Joseph Hogan thank you for joining us for another one of these Monday Market updates coming to you at 9 A.M Eastern every Monday morning get you ready for the week and a very important topic this week something that most investors most Americans don't understand what the FED is really trying to do to the economy a lot of people sa... Read More

Key Insights

• 🍝 Inflation has spiked to 8.3% over the past year, prompting the Fed to take action.
• 🥅 The Fed's goals are to decrease inflation and increase unemployment, which may result in economic slowdown.
• ☠️ Increasing interest rates can have a negative impact on the housing market and other sectors of the economy.

Questions & Answers

Q: What has caused the recent spike in inflation?

The Fed attributes the spike in inflation to its monetary policy during the pandemic, particularly keeping interest rates low for an extended period.

Q: How does the Fed plan to reduce inflation?

The Fed plans to increase interest rates to slow down the economy and decrease consumer spending, which they believe will lead to lower inflation.

Q: What impact will increasing interest rates have on the housing market?

Increasing interest rates will likely lead to higher mortgage rates, which could negatively affect the housing market and potentially cause a downturn.

Q: Which industries are most at risk for job losses?

The industries most at risk for job losses are construction, manufacturing, and mining/logging, as historically they have experienced significant job losses during recessions.

Summary & Key Takeaways

• The Fed's goal is to decrease inflation, which has spiked to 8.3% in the past year.

• They plan to increase interest rates to achieve this goal, which may slow down the economy and decrease consumer spending.

• The Fed also aims to increase unemployment from 3.7% to 4.4% by next year, potentially leading to job losses.