Speaker 1: This is America's Trucking Network with Kevin Gordon.
Speaker 2: Welcome board, Thanks for tuning in on this Thursday morning. Well,
Speaker 2: Lion Jerry Powell and the Federal Reserve lowered interest rates.
Speaker 2: We'll get to that in the moment. But first, yesterday
Speaker 2: during the afternoon, I was doing some show prepping, some
Speaker 2: work around the house and so on, and boy, we
Speaker 2: were having a bunch of wind gusts and I thought, well,
Speaker 2: what what what is that? I mean, not what is it,
Speaker 2: but how high is it? And I looked and they
Speaker 2: were saying we were getting between thirty five and forty
Speaker 2: five mile per hour winds.
Speaker 3: Now, where we live, it's up on a hill.
Speaker 2: And I've described this before, and so we face west
Speaker 2: and so all of the most of the weather we
Speaker 2: get comes from the west, and so when the wind comes,
Speaker 2: it comes in pretty stiff. And I was looking up,
Speaker 2: and I remember during the hurricane season they were talking
Speaker 2: about tropical storms, that the tropical storms are forming and
Speaker 2: that's just below a hurricane status. But in order to
Speaker 2: qualify for that, that's got to be thirty five mile
Speaker 2: per hour winds up to seventy four mile per hour winds.
Speaker 2: And I'm thinking I remember thinking that the time we'll shoot,
Speaker 2: we were always in a tropical storm or up you know,
Speaker 2: several days a month in a tropical storm up there
Speaker 2: on the hill, because that's kind of when we get
Speaker 2: but I guess during the winter months it's considered a
Speaker 2: gale storm or gale force winds or something along those lines.
Speaker 2: So it was kind of a surprising day. I mean,
Speaker 2: we get win, but there are certain times when the gusts,
Speaker 2: and I guess the way it comes in is where
Speaker 2: you can really hear it and hear it outside and
Speaker 2: how things rattle, either on the deck or something along
Speaker 2: those lines.
Speaker 3: I just thought i'd throw that out there.
Speaker 2: Having gale force wins in the wilder Kentucky area, I
Speaker 2: guess mostly, and looking around the country there's.
Speaker 3: A lot of wind going around a lot of other places.
Speaker 2: Getting to Lion Jerry Powell and the Federal Reserve now,
Speaker 2: I called Lion Jerry Powell Lion Jerry Powell for a reason.
Speaker 2: I guess they should clarify that all along. You know,
Speaker 2: he keeps talking about that. Well, at least during the
Speaker 2: twenty twenty four year when they started right after they
Speaker 2: paused raising interest rates after inflation had gotten out of
Speaker 2: control up to nine point one percent in June of
Speaker 2: twenty twenty two. I guess they finally decided that, well,
Speaker 2: you know, our mandate is we're supposed to keep inflation low.
Speaker 2: So they decided to start raising interest rates at that point.
Speaker 2: And then they paused in June July of around July
Speaker 2: of twenty twenty three, and so they hadn't done anything
Speaker 2: with interest rate increases or decreases. Well, all of a sudden,
Speaker 2: you know, they start talking about, well, our mandate is
Speaker 2: in we need to control inflation. Inflation needs to get
Speaker 2: down to about two percent. Then all of a sudden,
Speaker 2: they got this jobs report which had come out in
Speaker 2: January of twenty twenty four.
Speaker 3: We talked about that on this program.
Speaker 2: And this job's report was that they looked back through
Speaker 2: the previous year and determined that about eight hundred and
Speaker 2: eighteen I think it was eight hundred and fifty or
Speaker 2: something thousand jobs had been overestimated during that period of time,
Speaker 2: which basically boiled down to I think something like overestimating
Speaker 2: the employment numbers by sixty five seventy thousand per month.
Speaker 2: And this report came out and just in that January
Speaker 2: December January December of twenty twenty three. January of twenty
Speaker 2: twenty four is when I'm trying to spit out here,
Speaker 2: and it was a shock to everybody. And I remember
Speaker 2: talking at the point where then, you know, looking back
Speaker 2: through all this bragging that the Biden administration had talked
Speaker 2: about in terms of job creation since the pandemic and
Speaker 2: getting back and so on, started digging into the numbers
Speaker 2: and saying, well, you know, the plandemic ended pretty much
Speaker 2: twenty twenty one. Then we had the supply chain issues,
Speaker 2: and they started bragging about the number of jobs created.
Speaker 2: But if you go back to pre plandemic and what
Speaker 2: the jobs were at that time and how many jobs
Speaker 2: were lost as a result of COVID, they had lost
Speaker 2: something like we had lost something like twenty million jobs
Speaker 2: during that period of time, where restaurants closed, business, clothes
Speaker 2: manufacturing clothes, A lot of people were working from home,
Speaker 2: but for the most part, people were on unemployment or
Speaker 2: getting these subsidy checks or these stimulus checks from the
Speaker 2: federal government. And so when the people started coming back
Speaker 2: to work, the number of people that came back to
Speaker 2: work was around sixteen million. And they're claiming that we've
Speaker 2: created sixteen million jobs. Well, no, you're not creating sixteen
Speaker 2: million jobs. You just finally opened the and people started
Speaker 2: coming back. Now, the real number was that, if it's
Speaker 2: sixteen thousand that came back, what happened to those other
Speaker 2: four million? They're not back to work, So what are
Speaker 2: you not doing in order to bring them along? So anyway,
Speaker 2: in twenty twenty four, they started talking about, well, you know,
Speaker 2: we need to start paying attention a little bit to
Speaker 2: jobs or something along those lines. And it got a
Speaker 2: little bit you know, they started mentioning at that point.
Speaker 3: But what was weird is that this report.
Speaker 2: Came out in January indicating that these eight hundred thousand
Speaker 2: jobs had been overestimated. Well, the final report on that,
Speaker 2: for some reason, comes out in August, and when August
Speaker 2: rolled around, the report came out same number that they
Speaker 2: reported in January. Well, all of a sudden, everybody's going, oh,
Speaker 2: the job market is really slowing down. Oh this is
Speaker 2: you know, the job market is softening. The Federal Reserve
Speaker 2: needs to do something. They need to They had just
Speaker 2: had a one of their meetings. They said they need
Speaker 2: to have an emergency meeting and cut interest rates immediately.
Speaker 3: And so on.
Speaker 2: Well, between that time and then when they met in September,
Speaker 2: things had pretty much evened.
Speaker 3: Oubt.
Speaker 2: People had kind of gotten used to where there was
Speaker 2: a job's report that came in that said things were
Speaker 2: improving and that this this eight hundred thousand jobs that
Speaker 2: were lost. They started explaining away that, you know, and
Speaker 2: explaining how that happened, which was bs but again they
Speaker 2: overestimated it. So the numbers are what the numbers are. Well,
Speaker 2: in September of twenty twenty four, Lion Jerry Powell, who
Speaker 2: said that inflation rate has to come down to two
Speaker 2: percent before we start raising lowering interest rates, suddenly six
Speaker 2: weeks before the election, lowers interest rates a quarter percentage point,
Speaker 2: claiming that the job market is the thing, you know,
Speaker 2: because we've got this other mandate making sure that we've
Speaker 2: got a strong job market. So all the line that
Speaker 2: he did during that year saying that, oh, no, we're
Speaker 2: focused on inflation. We're focused on inflation. In September of
Speaker 2: twenty twenty four was up around three point two three
Speaker 2: point three percent, but they cut interest rates by a
Speaker 2: half a percentage point. I said at the time it
Speaker 2: was a political move. He's trying to push Kamala Harris
Speaker 2: across the finish line, which fortunately didn't work. But now
Speaker 2: all of a sudden, people are looking back on that
Speaker 2: and say, well, you know what, that was kind of
Speaker 2: a political move. Well, no kidding, but you know who
Speaker 2: called it out first, who talked about it first here
Speaker 2: on Americans Struck a Network.
Speaker 3: And again I mentioned this over and over again.
Speaker 2: If you listen to this program, you are so far
Speaker 2: ahead of the curve people won't even see your tail lights.
Speaker 2: Things we talk about on this program people start talking
Speaker 2: about weeks, months, even a half a year away from
Speaker 2: when we start talking about it. So anyway, that's kind
Speaker 2: of my point on that, and the fact that Federal
Speaker 2: Reserve line. That's why I call it lion Jerry Powell.
Speaker 2: Lion Jerry Powell again, because you can't trust what he's saying.
Speaker 2: President Trump calls him too late Powell because of being
Speaker 2: too far behind, mentioning the fact that he was slow
Speaker 2: to react to the inflationary pressures during the Biden administration
Speaker 2: and twenty well actually from the beginning of the Biden
Speaker 2: administration up until twenty twenty two. After June of twenty
Speaker 2: twenty two, when inflation got up to nine point one percent,
Speaker 2: nine point one percent in one month.
Speaker 3: Folks, Let's not forget that.
Speaker 2: When you know those people on the other side, the
Speaker 2: Democrats and the Liberals, start talking about affordability, what were
Speaker 2: you talking about back then, is my question. And secondly,
Speaker 2: if your guy, if you guys are the ones that
Speaker 2: created the unaffordability problem over the four years of the
Speaker 2: Biden administration, what makes you think that we're going to
Speaker 2: trust you to come back in and fix it. So
Speaker 2: again Jerry Powell talking about you know that what their
Speaker 2: mandate is. But then you know, as far as all
Speaker 2: the stuff he's keeps talking about that inflation needs to
Speaker 2: be around two percent, and yet he's and Trump keeps
Speaker 2: calling him too late because he was too late to
Speaker 2: react to inflation going out of control, and then once
Speaker 2: he started, once they started lowering the interest rates or
Speaker 2: raising the interest rates, rather then all of a sudden,
Speaker 2: when things started cooling down, he's too late to come
Speaker 2: in and start lowering the interest rates, which would generate
Speaker 2: an increase in the economy and boost up gross domestic
Speaker 2: product and keep the economy flowing and running smoothly. But again,
Speaker 2: he's been very reluctant to do that, and then when
Speaker 2: you compare our interest rates to the rest of the world,
Speaker 2: we are in some cases double on the list. On
Speaker 2: the list of countries with their mortgage interest rates and
Speaker 2: so on, we are forty sixth on the list compared
Speaker 2: to the rest of the world. So we're not the
Speaker 2: top ten, not the top five. We are forty six
Speaker 2: on the list in terms of lower interest rates, so
Speaker 2: we're in the six percentage rate.
Speaker 3: Some are as low as one point ninety seven.
Speaker 2: Coming up, we'll talk a little bit more about this
Speaker 2: Federal Reserve interest rate cut, because some of the things
Speaker 2: they talked about in here is kind of interesting. I'm
Speaker 2: Kevin Gordon, America's Trucking Network seven hundred WLW NEED.
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Speaker 2: I'm Kevin gored in America Instructing Network seven hundred at
Speaker 2: w LW talking about this Federal Reserve interest rate cut
Speaker 2: that they did yesterday afternoon. I came out at two
Speaker 2: o'clock in the afternoon, Federal Reserve split over where is
Speaker 2: priority should lie lowered? It's key interest rate, key interest
Speaker 2: rate Wednesday, but signaled a tougher road ahead for further reductions.
Speaker 2: I cannot wait for May until Lion Jerry Powell is replaced,
Speaker 2: and I wonder who that's going to be. A lot
Speaker 2: of people were talking about that Kevin Hassen, who is
Speaker 2: current advising President Trump on economic policies, that he might
Speaker 2: be the one. A lot of people are saying that
Speaker 2: there's a ninety some percent chance that he's going to
Speaker 2: be the one picked. It's called the National Economic Council Chair.
Speaker 2: Kevin Hassett is the front runner, but Lion Jerry Powell's
Speaker 2: got to go. As a matter of fact, again I
Speaker 2: mentioned this that I had heard this. I think it
Speaker 2: was in March or so, and I'm really not sure
Speaker 2: who brought it up. It may have been Scott Bessen,
Speaker 2: could have been Larry Kudlow from Fox Business News, but
Speaker 2: somebody mentioned the fact that what Donald Trump ought to do,
Speaker 2: because he kept at that point, has been you know,
Speaker 2: he's been on Powell since he, you know, came back
Speaker 2: in office that he needs to start cutting interest rates
Speaker 2: a little bit more vigorously, and that Powell has been
Speaker 2: very reluctant to do that. The fact that again going
Speaker 2: back to September of twenty twenty four, when he lowered
Speaker 2: interest rates a half percentage point a political move trying
Speaker 2: to get Kamala Harris elected.
Speaker 3: So I don't think he likes Trump very much, even.
Speaker 2: Though Trump was the one that appointed him to that
Speaker 2: position in his first term.
Speaker 3: I just it's unbelievable.
Speaker 2: But anyway, they were talking at the time that you
Speaker 2: can't unless you have just cause, you usually can't fire
Speaker 2: a Federal Reserve chairman, even though he does have the
Speaker 2: power to do that. History and tradition is that you don't.
Speaker 2: And so what people were suggesting, again I don't know
Speaker 2: if it was Scott Besson, but said that what Trump
Speaker 2: ought to do is ought to pick the person that's
Speaker 2: going to replace Jerry Powell, have them go through the
Speaker 2: confirmation process, and so that he's sitting in or he
Speaker 2: or she is waiting in the wings, and that would
Speaker 2: then put pressure on Jerry Powell that when people are
Speaker 2: you know, it's kind of one of those things where
Speaker 2: Jerry Powell is giving a press conference or talking about
Speaker 2: certain things, then they would turn to the new or
Speaker 2: the assume replacements.
Speaker 3: Well, what's your opinion on that? What do you think?
Speaker 2: How would you handle this if you were in that position,
Speaker 2: And it'd be a kind of a checks and balances
Speaker 2: if you were, if you will that okay, that Jerry
Speaker 2: Powell can't be out there all by himself prognosticating and
Speaker 2: talking about the economy. You got somebody that could possibly
Speaker 2: be on the same even footing talking about it as well.
Speaker 3: I don't know why they didn't do it.
Speaker 2: I thought it was an excellent I thought it was
Speaker 2: an excellent idea, but they haven't acted on it. Now
Speaker 2: supposedly by the first of the year or shortly after
Speaker 2: the first of the year. I wish it was done
Speaker 2: before Christmas. That'd be a nice Christmas gift for the
Speaker 2: American public to know who is going to be heading
Speaker 2: up the FED and what their ideas are, whether it's
Speaker 2: supply side or whatever they are. In terms of an economist,
Speaker 2: it would be interesting to know who that is. But again,
Speaker 2: I cannot wait for Jerry Powell to be out of
Speaker 2: this office. Again, they're talking about that it's going to
Speaker 2: be a high hurdle in order of future interest rate cuts. Well,
Speaker 2: let's get another Federal Reserve chairment in there and see
Speaker 2: what happens. Fulfilling expectations of a hawkish cut, the Central
Speaker 2: Bank Federal Open Market Committee cut its key overnight borrowing
Speaker 2: rate by a quarter percentage point, putting it in the
Speaker 2: range between three point five and three point seven five percent.
Speaker 2: Now in other countries, in England, France, some of those
Speaker 2: countries that number is down around one point five percent. Now,
Speaker 2: that key overnight rate, again is not the overall interest
Speaker 2: rates in our country. What it is is the overnight
Speaker 2: borrowing costs that banks do between banks. If they have
Speaker 2: to borrow money from individual banks for check cashing purposes,
Speaker 2: or if there's stores that deal in a lot of
Speaker 2: cash and they have to have a lot of cash
Speaker 2: on hand at their individual store locations, maybe around the
Speaker 2: first of the month, middle of the month, something along
Speaker 2: those lines, around payday, whatever, there are cash needs, and
Speaker 2: they may not because you don't keep a lot of
Speaker 2: cash in the banks anymore. Simply because of well liability issues,
Speaker 2: and plus if cash is sitting there, it's not somewhere
Speaker 2: gaining interest or being invested overnight in some funds. But anyway,
Speaker 2: it's a whole complicated issue there. But again, this Federal
Speaker 2: Reserve overnight rate in terms of borrowing is what this
Speaker 2: rate ties into. The three point five now going to
Speaker 2: be three point five to three point seventy five.
Speaker 3: However, the move.
Speaker 2: Carried caution flags about where the policy is heading heading
Speaker 2: or headed from here, and featured a some no votes
Speaker 2: in terms of three members, which hadn't happened since September
Speaker 2: twenty nineteen. Usually the Federal Reserve, when they do a vote,
Speaker 2: it's unanimous, but over the last few months there have
Speaker 2: been dissension. There has been people who have either voted
Speaker 2: no on an interest rate cut or one in particular
Speaker 2: that keeps voting no because he wants a higher rate.
Speaker 2: So the nine to three vote against featured a hawkish
Speaker 2: and Dubvish descents. Governor Stephen Maren favored a steeper half
Speaker 2: point reduction, while original or while regional presidents Jeffrey Schmid
Speaker 2: of Kansas City and Austin Goldsby of Chicago backed holding
Speaker 2: the line. In fact, again they voted against an interest
Speaker 2: rate cut.
Speaker 3: They wanted no interest rate cut this period.
Speaker 2: Now, Stephen Maren has been a very advocate of what
Speaker 2: they call a hawkish hawkish member of the Committee, wanting
Speaker 2: interest rates to be cut even further, and I agree
Speaker 2: with it. I think the interest rate should have been
Speaker 2: the Federal Reserve cutting interest rate last time and even
Speaker 2: this time should have been a half a percentage point,
Speaker 2: but they keep doing it in quarter point increments. Stephen
Speaker 2: Maren said that it should have been a full half
Speaker 2: a percentage point, so he voted no against.
Speaker 3: The quarter percent.
Speaker 2: Now these two FED chairman or FED presidents, Jeffrey Schmid
Speaker 2: and Austin Goldsby, who voted against any rate cut, Let's
Speaker 2: not forget who Austin Goldsby is. Austin Goldsby was the
Speaker 2: chairman of the Economic Advisors in the Obama administration, so
Speaker 2: he's very liberal and of course very political. I remember
Speaker 2: seeing him on various shows, in various programs talking about, oh,
Speaker 2: how great the economy was and how great this was.
Speaker 2: The Affordable Care Act would be super because it's going
Speaker 2: to cut the insurance costs of everybody by twenty five
Speaker 2: hundred dollars, when in fact, the Affordable Care Act is
Speaker 2: anything but affordable care. It actually raised people's premiums on
Speaker 2: insurance by twenty five hundred dollars. They were supposed to
Speaker 2: save US twenty five hundred dollars, but in fact cost
Speaker 2: US twenty five hundred dollars, a five thousand dollars swing.
Speaker 2: So he had been this mouth he's for the Obama administration,
Speaker 2: and then during the Trump administration was a critic of
Speaker 2: the Trump administration. Every time you talk about, wow, you know,
Speaker 2: during our time, we did this and and and this
Speaker 2: is where I recommend a.
Speaker 3: Very liberal guy.
Speaker 2: So the fact that he is dissenting and is and
Speaker 2: is part of the Fed, now you are not getting
Speaker 2: a supply sider. You're not getting a conservative voice.
Speaker 3: Now.
Speaker 2: They keep remember everybody keeps talking about when Trump was
Speaker 2: talking about getting rid of Jerry Powell, that the Federal
Speaker 2: Reserve is this independent body, that it's you know, a
Speaker 2: political that it that it only concentrates on economic policy
Speaker 2: and what's good for the country. Well, in fact, you've
Speaker 2: got some of these people on there that are a
Speaker 2: bunch of clowns, and they don't really understand economics and
Speaker 2: Austin Goldsby is a guy who is very liberal.
Speaker 3: And is anti Trump.
Speaker 2: So the fact that he is anti Trump and on
Speaker 2: the Federal Reserve, you mean tell me that we're supposed
Speaker 2: to believe that he leaves his political views at the
Speaker 2: door when he comes in to serve as one of
Speaker 2: the board chairman or one of the Federal Open Market
Speaker 2: Committee governors at one of the districts, one of the
Speaker 2: twelve districts around the country.
Speaker 3: I don't think so.
Speaker 2: And if you listen to interviews from him and go
Speaker 2: back and look at some of the stuff that he said,
Speaker 2: you know he's not a fan of Donald Trump and
Speaker 2: he's not conservatives. So again, the fact that he's dissenting
Speaker 2: on this and the fact that there is political movement
Speaker 2: within the Federal Reserve is again an indication when the
Speaker 2: spoon feder regurgitators in the mainstream media tell us that
Speaker 2: this is an independent body, not so much. Talk a
Speaker 2: little bit more about this coming up. I'm Kevin Gordon,
Speaker 2: America's Trucking Network seven hundred WLW.
Speaker 9: Here's our trucking forecast for the Tri State and the
Speaker 9: rest of the country. In the Tri Estate overnight, mostly
Speaker 9: Claudia with the chance of snow. The low down to
Speaker 9: twenty six mostly claude Thursday, a high of thirty three
Speaker 9: snow overnight Thursday into Friday, with one to three inches
Speaker 9: of accumulation possible. An additional inch of snow could accumulate
Speaker 9: during the day Friday. Nationally, rain over the Pacific Northwest
Speaker 9: diminishing into early Thursday. Late Thursday into Friday, Arctic air
Speaker 9: surging south into the northern Plains, while active lake effects
Speaker 9: snow fall down one of the Great Lakes region continues
Speaker 9: through Thursday. Meanwhile, moderate to heavy snow being seen from
Speaker 9: the mid Mississippi Valley into the Upper Ohio Valley and
Speaker 9: Central Appalachians, from the west coast of the Rockies, as
Speaker 9: well as the central to southern Plains into the Lower
Speaker 9: Mississippi Valley. Above average temperatures are expected.
Speaker 2: Seven hundred wlw IM Kevin Gordon.
Speaker 3: This is America Destrucking Network.
Speaker 2: Turning in our conversation here about the Federal Reserve interest
Speaker 2: rate cut decision.
Speaker 3: We've talked about Austin Goldsby, and you know.
Speaker 2: In the previous segment about how he is so anti
Speaker 2: Trump and was a member of the Obama administration. So
Speaker 2: again he's got political leanings in that direction, and they
Speaker 2: talk about this interest rate being hawk ish, and I
Speaker 2: need to probably explain that. By the way, if you've
Speaker 2: missed any of our previous segments or into our shows,
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Speaker 3: And it was kind of interesting.
Speaker 2: You know, in the parlance when you talk about a
Speaker 2: hawk or a dove, you know, hawk seems to be
Speaker 2: more aggressive, whereas a dove is more passive. But apparently
Speaker 2: the way the Federal Reserve and of course you know
Speaker 2: the Federal Reserve controlling interest rates, that of course they're
Speaker 2: going to be backwards from what would normally be there.
Speaker 3: I get this, okay.
Speaker 2: In Federal Reserve parlance, hawks are generally more concerned about
Speaker 2: inflation and favor higher interest rates, while doves focus on
Speaker 2: supporting the labor market and want lower rates. That seems
Speaker 2: to me to be a complete flip. Now, if you're
Speaker 2: caught talking about a inflation hawk, where you are worried
Speaker 2: about inflation and you want to keep that in check,
Speaker 2: that's one thing. But when you're talking about interest rates,
Speaker 2: interest rates should be in my opinion aggressive one way
Speaker 2: or the other. If you've got and really, you know,
Speaker 2: the marketplace should determine where these rates are. And everybody
Speaker 2: talks in terms of these interest rates that if they are.
Speaker 3: Low, it stimulates the economy.
Speaker 2: We talk about that when we're talking about oil and
Speaker 2: gas prices. Every time there is a comment in there,
Speaker 2: they refer to that as a situation where if interest
Speaker 2: rates are low, then people will have more disposable income,
Speaker 2: they will buy and use more gasoline, which will then
Speaker 2: increase well, affect gasoline prices or affect the prices, because
Speaker 2: if the supply is low and the demand is high,
Speaker 2: the prices will go up and so on. So it's
Speaker 2: just a matter of supply side economics. And so it's
Speaker 2: interesting to see the way they put this in consideration.
Speaker 3: So anyway, getting.
Speaker 2: Back to this particular, going back to what was going on,
Speaker 2: they're talking about the third consecutive time that Stephen Maron
Speaker 2: had voted against interest rate cut because he wants a
Speaker 2: half a percentage.
Speaker 3: Point interest rate cuts.
Speaker 2: And in this they say, the post meeting rate statement,
Speaker 2: Now get.
Speaker 3: This, Okay, how lazy do you have to be?
Speaker 2: All Right, you got twenty three thousand employees at the
Speaker 2: Federal Reserve, and you have a situation where they can
Speaker 2: come up with economic I mean they can get on
Speaker 2: the telephone, they can read the Wall Street Journal, the
Speaker 2: Business Insigner or whatever and get all this information as
Speaker 2: far as what's going on in the economy, and then
Speaker 2: when they're making their determination, they can come up with
Speaker 2: some original language.
Speaker 3: But get this, okay.
Speaker 2: The post meeting rate statement repurposed language from the FOMC
Speaker 2: meeting a year ago. They say, in considering the extent
Speaker 2: and timing of additional adjustments to the target range for
Speaker 2: the Federal Funds rate, the Committee will carefully assess incoming data,
Speaker 2: the evolving outlook, and the balance of risks.
Speaker 3: What did they just say there?
Speaker 2: I mean, it is just so obvious, or you know,
Speaker 2: it's almost like stating the obvious.
Speaker 3: It's almost like, you know, if you turn on the.
Speaker 2: Radio between midnight and one am Tuesday through Friday, Kevin
Speaker 2: Gordon is going to be on americastruct A network. I mean, yeah, okay,
Speaker 2: why do you have to spell that out? So again,
Speaker 2: let's look at this particular statement, in considering the extent
Speaker 2: and timing of additional adjustments to the target range, in
Speaker 2: other words, adjusting the interest rate up or down federal
Speaker 2: funds rate. The Committee will carefully assess incoming data. Isn't
Speaker 2: that assumed? Are we assuming that you're not you're just
Speaker 2: going to ignore the data, that you're not going to
Speaker 2: pay any attention to it, that you're going to fly
Speaker 2: by the seat of your pants. Well, of course you're
Speaker 2: going to consider carefully assess that the evolving outlook, what's
Speaker 2: going on at that particular point in time, what's up,
Speaker 2: what's down? What you know, even geopolitical issues are going
Speaker 2: to come into play. So the Committee will carefully assess
Speaker 2: the incoming data and evolving outlook and balance the risks.
Speaker 3: Okay, and what risk are we talking about?
Speaker 2: Are we talking about that if the interest rates are down,
Speaker 2: people are going to have more money in their pocket.
Speaker 2: They'll be out there spending. Do they think that that
Speaker 2: will lead Some people think that will lead to inflation?
Speaker 2: Other people think that, okay, people having more money in
Speaker 2: their pockets is a good thing.
Speaker 3: You know, we are a lot better stewards of what
Speaker 3: we want to do or what we need with our money.
Speaker 2: Rather than having it confiscated by the federal government or
Speaker 2: confiscated in the form of interest rates on our credit
Speaker 2: cards and so on. If we've got more money in
Speaker 2: our pockets, we'll pay down our debt. Maybe we'll save
Speaker 2: a little bit more. But it's up to us to
Speaker 2: make that determination and not manipulated by some entity in
Speaker 2: some ivory tower somewhere. So again, this is some of
Speaker 2: the things that they, you know, sitting on high they
Speaker 2: act as though that they are so brilliant and so smart. Well,
Speaker 2: if they're so smart, how did they let inflation get
Speaker 2: out of control during the Biden administration? And how did
Speaker 2: they tamp down economic recovery buy high interest rates and
Speaker 2: going into the area.
Speaker 3: Now why are.
Speaker 2: They pulling back on the reins and keeping this economy
Speaker 2: from flourishing again? These guys are the so called experts,
Speaker 2: but I'm not so sure how expert or how smart
Speaker 2: they are. Third consecutive rate cut is now in the books.
Speaker 2: That turned to where they're going to head from here,
Speaker 2: the closely watched dot plot.
Speaker 3: Now what part of this is that?
Speaker 2: Also as part of the meeting, everybody that's part of
Speaker 2: the meeting, they will say, Okay, what do you think
Speaker 2: or what you anticipate or what's your opinion on where
Speaker 2: interest rates should be in the coming year or in
Speaker 2: the upcoming meetings, and so some people will say, well,
Speaker 2: I think interest rates need to be reduced, either lowered
Speaker 2: or raised or the same. And so they plot these out,
Speaker 2: so they, you know, talk about the individual meetings and okay,
Speaker 2: how many interest rate cuts a particular board member should
Speaker 2: see for the year, how many you know, and so on.
Speaker 2: So they plot these all out and then they kind
Speaker 2: of accumulate those dots on this board and kind of
Speaker 2: get a feel for how these individuals feel about certain
Speaker 2: things because they talk about that there isn't a whole
Speaker 2: lot of discussion. There isn't a whole lot of debate
Speaker 2: during these meetings. So it's it's like, well, you know,
Speaker 2: what is the why.
Speaker 3: Do you meet?
Speaker 2: Why don't you not just phone it in? Why do
Speaker 2: you have to Why don't you just pick up the
Speaker 2: phone and say, all right, I think there should be
Speaker 2: a a half percent rate your meeting for two weeks,
Speaker 2: for two days. I mean, there's no debate during that
Speaker 2: period of time. The whole thing just kind of surprises
Speaker 2: me from some time from time to time. So again,
Speaker 2: and getting back to this whole thing, that a hawk
Speaker 2: is somebody who wants to raise interest rates, whereas a
Speaker 2: dove is somebody that wants to lower them.
Speaker 3: I don't get that. That doesn't make any sense to me.
Speaker 2: So anyway, on the economy ant, the Committee raised its
Speaker 2: collective view of gross domestic product for twenty twenty six,
Speaker 2: boosting this September projection by half a percentage point to
Speaker 2: two point three. The Committee continues to expect inflation to
Speaker 2: hold above two percent target until twenty twenty eight. Well,
Speaker 2: if they're expecting the inflation rate to be above two
Speaker 2: percent till twenty twenty eight, why are they saying they're
Speaker 2: going to hold back any interest rate cuts until it
Speaker 2: hits that two percent rate. If they already figure that
Speaker 2: it's going to be there anyway, why not stimulate the economy,
Speaker 2: boost production, which would probably wind up reducing inflation because
Speaker 2: the more items that are produced that are produced at
Speaker 2: a lesser cost. I mean, you've got your fixed costs,
Speaker 2: and you have your variable costs. But the more products
Speaker 2: you you know, the more products you sell, the more
Speaker 2: products you make, brings that cost overall down, which then
Speaker 2: has passed along to the consumer, and the consumer saves
Speaker 2: money on that. So again, apparently these people just don't
Speaker 2: understand economics on inflation. Prices remain stubbornly high in the
Speaker 2: FEDS preferred gauge, putting the annual rate at two point
Speaker 2: eight percent in September, the most recent month for which
Speaker 2: data is available. They talked about in here that again
Speaker 2: timing of the federal rate cuts and talking about Trump
Speaker 2: signal that he will make a decision by the end
Speaker 2: of the year as to who is going to replace Powell.
Speaker 2: I wish he would have done that a little bit earlier. Again,
Speaker 2: we've talked about in the past. How I think that
Speaker 2: you know that at the beginning of the year that
Speaker 2: they were talking about possibly firing Derme Powell and bringing
Speaker 2: somebody else in, and then they said, you know again
Speaker 2: that they didn't think that was a good idea, and
Speaker 2: that affect the independence of the Federal Reserve. Well, again,
Speaker 2: they aren't independent. They're politically minded. And if you had
Speaker 2: and one of the suggestions was that somebody should you know,
Speaker 2: they should vote on who should replace Jerome Powell, have
Speaker 2: that person nominated, have that person go through the.
Speaker 3: Confirmation process so that they'll be in place.
Speaker 2: So if Jerome Powell makes a comment on the economy,
Speaker 2: they can turn to the new federal chairman and say, well,
Speaker 2: do you agree with that?
Speaker 3: What do you think should be done? And so on.
Speaker 2: So I think that should have been done along with this,
Speaker 2: and so I think that should have been done around
Speaker 2: the beginning of the year, but again it should be
Speaker 2: done by the end of the year. Coming up, we'll
Speaker 2: talk a little bit more about what's going on here
Speaker 2: and finish this up and get onto some other things,
Speaker 2: because these interest rate cuts are affecting other businesses and
Speaker 2: some of the projections that these businesses are making. I'm
Speaker 2: Kevin Gordon, America Struck a Network seven h under WLW.
Speaker 1: News Radio seven hundred WLW and iHeartRadio Station Guarantee Human
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Speaker 3: HI Heard Radio. This is Jim. Hello. Jim started advertising
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Speaker 2: Eight Again, I think it should have been a full
Speaker 2: half a percentage point. That would have been nice, but
Speaker 2: we take what we can get. Federal officials have had
Speaker 2: to operate, and I love this. Had to operate in
Speaker 2: an environment where much of the official data they use
Speaker 2: in decision making either has been trickling in well behind
Speaker 2: schedule or missing entirely due to the government shutdown. The
Speaker 2: Schumer shutdown. Now, we saw during the Schumer shutdown, again,
Speaker 2: I got to reiterate the fact that the Federal Reserve
Speaker 2: has twenty three thousand employees that are supposed to be
Speaker 2: these economists, that they're stationed in different locations twelve different
Speaker 2: districts around the country, and so being in those individual districts,
Speaker 2: they would be able to gauge the economy in those
Speaker 2: particular markets by being out on the street reading some
Speaker 2: of the business pages of the newspapers there, seeing what's
Speaker 2: going on in the economy in their own individual districts,
Speaker 2: and be able to report on this. We saw during
Speaker 2: the Schumer shutdown that there were companies Goldman Sachs, Nationwide
Speaker 2: City Bank, and a couple of others that would look
Speaker 2: at the data that the states put in on a
Speaker 2: weekly basis up to the Labor Department's website saying how
Speaker 2: much of the initial jobless claims were reported by those
Speaker 2: states for that particular week. And so these companies were
Speaker 2: going to that site, gathering that information and coming up
Speaker 2: with the initial jobless claims on a weekly basis. I'm
Speaker 2: sure that a lot of this data that is being
Speaker 2: funneled to I mean the federal government's got to be
Speaker 2: getting this information from somewhere, and that somewhere could be
Speaker 2: out there being distributed to them, but then tapped into
Speaker 2: by other people when the government shut down, and they
Speaker 2: can come up with these reports on their own, which
Speaker 2: leads me to believe that, or leads me to ask
Speaker 2: the question, why aren't some of these things being done
Speaker 2: by an independent agency rather than relying on the federal
Speaker 2: government to do this and the federal the taxpayers. I'm
Speaker 2: sure there's a profitability in there where somebody could put
Speaker 2: this data together and sell it to the individual news
Speaker 2: agencies or whatever. But again, reliance on the federal government
Speaker 2: to come up with these reports. And again, if that
Speaker 2: information is available and other people can tap into that
Speaker 2: and come up with the same reports, why aren't we
Speaker 2: kind of duplicating processes there. So again the fact that
Speaker 2: they say that they're operating it's almost as they're trying
Speaker 2: to say we're operating blind. Where again, you don't go
Speaker 2: to the grocery store, you don't go to the gas station,
Speaker 2: you don't go to the hardware stores, you don't go
Speaker 2: out and observe what's going on. You don't eat out,
Speaker 2: you don't go to any of these things in your
Speaker 2: own districts and get kind of the compilation what's going
Speaker 2: on there. And people talk about that within the Federal
Speaker 2: Reserve twenty three thousand employees, So you got to kind
Speaker 2: of wonder what they do. I said, again, they're talking
Speaker 2: about that some of the numbers that they're looking at,
Speaker 2: what data they do have available indicator that the labor
Speaker 2: market is in a low hire, no fire, and client climate.
Speaker 3: Well, that's been talked about often.
Speaker 2: That's been talked about almost every week, talking about initial
Speaker 2: job as claims, talking about the employment reports, talking about
Speaker 2: what these companies are doing, what they're telling their board members,
Speaker 2: what they're telling their stockholders when they're having these meetings. Again,
Speaker 2: this information has been well known out there. And they're
Speaker 2: talking about their unofficial data point from talking about heavier
Speaker 2: payroll reductions, and they cite this company that they're talking
Speaker 2: about that this Challenger Great in Christmas is saying that
Speaker 2: their estimates of future layoffs, based on some of the
Speaker 2: reports that these companies have said, is going to be
Speaker 2: one point one million people.
Speaker 3: In the coming year.
Speaker 2: Now, just last month they said they announced that there
Speaker 2: was going to be at one hundred and fifty some
Speaker 2: thousand people that were going to be laid off, well
Speaker 2: the following month, just a month later, they adjusted that
Speaker 2: by half. And so a lot of people have said
Speaker 2: that some of that employment data, some of that stuff
Speaker 2: that they gather and some of these other people isn't
Speaker 2: as reliable as other data. So rather than focusing on
Speaker 2: and mentioning that unreliable data, the lazy part of the
Speaker 2: spoon fed regurgitators in the mainstream media, they don't bother
Speaker 2: going out and getting the actual data from the people
Speaker 2: that know what they're talking about. So again, if they're
Speaker 2: relying on something that is not necessarily accurate, I don't
Speaker 2: know why they would do that. So anyway, Uh, one
Speaker 2: of the things that I saw, and again this is
Speaker 2: directly related to well directly relatable to what we've been hearing.
Speaker 2: You know, as I've said before, the Democrats have been
Speaker 2: whining and talking about affordability. Yet where were they concerned
Speaker 2: about that during the Biden years? During the Biden administration
Speaker 2: when gas got up to at one point national average
Speaker 2: of five dollars and two cents a gallon, whereas today,
Speaker 2: as of today, gas prices across the board national averages
Speaker 2: two dollars and ninety four cents, So again, where were
Speaker 2: they back then? Talking about affordability, Phil Flynn has a
Speaker 2: very interesting editorial. Actually it's his energy report, but a
Speaker 2: lot of things in here. In this particular energy report
Speaker 2: is very interesting. Gasline price is at the lowest level
Speaker 2: since twenty twenty one, making life more affordable, and seeing
Speaker 2: that affordability is the new favorite word of the left,
Speaker 2: that should be a major win. Of course, the left
Speaker 2: will point out that the electricity won't point out will
Speaker 2: point out that electricity prices have been soaring, but that
Speaker 2: is directly attributable to the record demand that has happened
Speaker 2: because of power centers, and demand for artificial intelligence that
Speaker 2: is growing, and the economy and lack of investment in
Speaker 2: infrastructure that occurred due to democrat over regulation and the
Speaker 2: push toward green energy. In other words, all this point
Speaker 2: push to green energy, all those grants that were put
Speaker 2: out there, the billions of dollars that were put into
Speaker 2: that from the federal government in the form of grants
Speaker 2: or tax credits to these green energy companies that are
Speaker 2: going to produce all these windmills, solar power, and all
Speaker 2: this sort of stuff which hadn't even been a blip
Speaker 2: on the radar screen in terms of and they talked
Speaker 2: about this would be more affordable because of the investment
Speaker 2: in that, the shift to that from other reliable sources,
Speaker 2: and what they talk about in terms of fossil fuel.
Speaker 2: That has spiked these energy prices. As you know, when
Speaker 2: you start raising increasing the regulations on certain areas of
Speaker 2: energy production like oil and gas or gas cold powered
Speaker 2: plants in favor of solar power or wind power which
Speaker 2: is unproven and unreliable. As they found out, you don't
Speaker 2: have as much infrastructure and you do not have as
Speaker 2: much electricity being produced, so you're not you're doing away
Speaker 2: with one and not replacing it with one that's even
Speaker 2: better or even substantial. So that led to brownouts and
Speaker 2: led to higher costs for the individuals because not only
Speaker 2: are there having to fund one area that is producing electricity,
Speaker 2: but developing another area that's well supposed to increase or
Speaker 2: develop electricity that isn't being produced. So again, these costs
Speaker 2: and you know the you know, remember the Affordable Care
Speaker 2: or not the Affordable Care Act, but THEA was it
Speaker 2: called the Inflation Reduction Act. When the administration passed that
Speaker 2: Inflation Reduction Act. It was basically they might as well
Speaker 2: call it the Green New Steel Bill because there was
Speaker 2: an awful lot of funding in there for these green
Speaker 2: energy products. So we jumped a billions and billions of
Speaker 2: dollars into those which really didn't pan out. So that's
Speaker 2: wasted tax money, that's wasted energy production, and again higher
Speaker 2: electricity costs. But it's a very good editorial. I'll probably
Speaker 2: posted this on my Facebook page. But getting to one
Speaker 2: of the areas where things are really important in terms
Speaker 2: of how interest rates were affecting different things. Hot Home
Speaker 2: Depot issues it costs twenty twenty six Outlook Home Depot
Speaker 2: is offering costious preliminary outlet in the coming year, a
Speaker 2: sign that the home improvement retail doesn't anticipate the housing
Speaker 2: market to rebound in the short term. The company expects
Speaker 2: comparable sales growth to be in the range of flat
Speaker 2: to up to two percent for the year, below the
Speaker 2: average of estimates compiled by You and these other companies.
Speaker 2: The US housing market has weighed on Home Depot as
Speaker 2: high interest rates prompt consumers to remain on the sidelines
Speaker 2: for big ticket purchases and projects that required refinement and
Speaker 2: required financing. While mortgage rates are lower than they were
Speaker 2: a year ago, Americans have been cautius amid higher costs
Speaker 2: across the economy. Some prices also remain high, remaining that
Speaker 2: the meaning that the housing has become more out of
Speaker 2: reach for a large portion of the population directly result
Speaker 2: of interest rates. Now, what they are also saying in
Speaker 2: this report that Home Depot released, and we may talk
Speaker 2: about this a little bit more tomorrow, but they hosted
Speaker 2: this meeting and talked about these issues, but then added
Speaker 2: that if the market, if the interest rates come down,
Speaker 2: they're forecast for increases, They're in forecast for u profitability,
Speaker 2: and additional sales could jump up to four and a
Speaker 2: half to five percent increase. So again they're saying, here's
Speaker 2: what we expect it to be. But if interest rates
Speaker 2: come down, here's what will happen. There'll be more people
Speaker 2: spending money, more people buying houses, and so on. So again,
Speaker 2: very important. That's why interest rates, That's why I talk
Speaker 2: about that on this program a lot. Well, folks, we're
Speaker 2: up against clock here. Time to step out, Stay tuned
Speaker 2: for REREDI raded at the top of the hour. I'm
Speaker 2: Kevin Gordon Americas struck in the network seven hundred WLW