June 23, 2025 • 8 mins
America's Money Answers Man Jordan Goodman joined the show to discuss the latest economic news and trends.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Jordan Goodman is with US America's money answers man. Lots
of things to talk about. Last week, the FED met
and as expected that had been telegraphed quite clearly did
not drop rates, much to the consternation of President Trump
and others. But they are staying the course, Jordan, and
not a surprise, right.
Speaker 2 (00:20):
It wasn't a surprise that they kept things where they
are in June. But there is the possibility now that
they would cut in July. The numbers have been coming
in quite good, inflations down to roughly two percent a
little bit more than two percent. Unemployments about four point
two percent has actually been rising a bitter the employment
markets getting weaker, and the rates that they have now
(00:45):
are about one and a quarter percent higher than the
so called neutral rate. So they're still considered kind of
restrictive in where they are now, and so I think
the consensus is starting to build that they will cut
rates at their July meeting to some extent depends what
happens with TERRAFS. I mean, we still have this July ninth,
(01:07):
the kind of deadline hanging over us as to where
we're going to get tariff deals or not. If we
don't get tariff deals and the tasks go into effect
that could be inflationary. So you know, it's still a
bit of an uncertain situation.
Speaker 1 (01:20):
Which factor is the FED going to consider most outside
of tariff So let's say the things remain status quo,
there are pretty well going forward. What's the next thing
they're looking at most closely to make a decision and
whether to cut rates.
Speaker 2 (01:35):
Inflation and I mean the so called TCE. The person
of consumption expenditure number is down about two point one percent.
That's the key to them. They would like to cut
rates as they could, They just don't want to cut
rates and then have that set off a round of inflation.
Right now, it's not seeming that no one thing that's
changed since those numbers came out is oil. Oil had
(01:57):
gone down sharply in gasoline, and that really contributed to
those lower inflation numbers. That has reversed in the last
week or so because of what's going on the Middle East.
Speaker 1 (02:07):
Of course, always only have unrest in the Middle East,
at least in the short term, it causes oil to spike,
and that is certainly what has happened, and that of
course still has to be played out, Jordan, but a
lot of I guess right now, uncertainty there.
Speaker 2 (02:22):
Yeah, and Iran may respond by attacking American assets all
over the Middle East when we are ready for that.
And the next thing they may do, as crazy as
that may be, is try to close the strain. And
for Moose, last week the Ietola specifically said that, he said,
if they bomb us, we're going to block the Straight
and for Moos where all the oil goes through from
(02:44):
Saudi Arabia and Kuwait and Bahrain and so on, and
we have the sixth fleet there battle back. We might
have an open naval conflict in the middle of the Straight.
And for Moose, that would definitely kind of spook the
oil markets. So oil had been like in the high fifties,
now it's in the mid seventies on all the fear
(03:04):
of this.
Speaker 1 (03:06):
Of course, being able to produce more energy at home
is part of a way to counteract that, at least
in part, and we'll see how it all plays out.
You can reach Jordan Goodman via email Jordan at Moneyanswers
dot com. A housing market right now not good. Buyers
are not really feeling it with some of the things
(03:27):
happening Also, the high rates continue.
Speaker 2 (03:29):
Right so, the latest numbers came out, there are a
half million more sellers than buyers in the home market.
A lot of sellers have been holding back, hoping for
these higher prices, but the buyers have several things stopping them.
First thing is mortgage rates roughly seven percent, which is
just unaffordable for a lot of people. Second thing is
(03:51):
the home prices are higher than they can afford. All
this uncertainty we just talked about, as far as the
Middle East war and interest rates and the TWIFF, all
this stuff has people cautious about making a long term
decision like buying a home. So it's been a terrible
spring season for home sales, and I think it's going
to continue. I don't think any of those things are
(04:12):
going to change in any time soon. So it's a
rough time to sell a home right now, no question
about it.
Speaker 1 (04:18):
Then, I think another thing that you hinted at, their
sellers are not willing to come down in their price.
Speaker 2 (04:24):
Are they well, if they want to sell their homes.
I mean, I mean in some cases they are. There's
definitely some sellers are lowering their price. But even if
the price is down seven percent, mortgage and all of
sudden certainty stops a lot of bias from mornings and movement.
A lot of people would like to buy homes, but
they don't feel it's prudent either financially or with their
(04:46):
life path, or they should do it. I mean, say
you were a federal employee and you think you have
security for life, and all of a sudden you get
laid off. I mean, federal employees aren't buying a out
of homes.
Speaker 1 (04:58):
These days, no doubt about that. Also, speaking of jobs recently,
and I had a guest on my show talk about
the effect of artificial intelligence, it's hitting some of the
jobs at college grads right now might typically be getting
as there's some change going on there, and some recent
(05:19):
college grads are having a tough time finding employment right
It's hard.
Speaker 2 (05:24):
To compete against artificial intelligence because AI doesn't complain, it
doesn't ask for overtime, it doesn't want vacation, It just works.
So yeah, I mean, we've had all these graduations now
and it's a much tougher job market than those last
few years. But the new factor is companies are using
AI to do the jobs that humans used to do.
(05:47):
I was just last week in Seattle and talking to
people from Microsoft. Microsoft laid off about three thousand people
because a lot of their jobs, coding and so on,
are being done by AI today. So this is a
new threat to highly educated, trained people to be battling
against the machines.
Speaker 1 (06:06):
Yeah, and of course the other advantage is AI are
rarely I guess makes a mistake per se. It's all
about garbage and garbage out. And yeah, that's an adjustment
of the job markets for sure. Speaking of adjustments, Jordan,
what's going on with the Big Beautiful bill. They're still.
Speaker 2 (06:26):
Centerate. It's working on I think it's highly unlikely they're
going to pass it and have it ready for President
Trump to signed by July fourth, as he'd been wanting
certain things the Center's putting in the House did not want.
And so it's going to be very controversial if it
can make it through the Senate at all, and if
it does, how it's going to be reconciled with the
House version. So some of the specific areas that are
(06:48):
kind of controversial, the new tax cuts on top of
the renewing of the existing tax cuts. The new tax
cuts for tips over time and SAR security are very popular,
but they drain a lot of revenue from the government
and make the deficits dramatically worse. The state and local
(07:08):
at taxes so called salt deductions. They have been at
ten thousand since twenty seventeen, but that's been raised to
forty thousand in the House bill, and there's some in
the Senate they want to go back to ten thousand.
Some of it wants to be even more. So that's
the whole controversy on the salt deductions. And then the
Medicaid cuts. Some people think it's too dramatic and it's
(07:32):
going to hurt all kinds of rural hospitals. Some think
there should be more Medicaid cuts. So these are major
sticking points that the Senate has to figure out. And
they only have like three votes margin, and Ran Paul
from Kentucky says he's not voting for it at all.
So they're basically down to two votes whether they can
pull this thing off or not.
Speaker 1 (07:53):
And meanwhile, I'm bitcoin and gold to keep on going up.
Speaker 2 (07:58):
Right, So Bitcoin's up to about one hundred and five thousand,
and gold is well over thirty three hundred. The dollar
continues to fall because of all these deficits and the
least we've been talking about in the uncertainty in the tariff,
and so that's the safe haven today. Gold and bitcoin.
I've been saying this for a while with you, Todd.
I think they're going to continue to move up because
(08:20):
those are considered the places they have your money instead
of the US dollar these days.
Speaker 1 (08:25):
That's Jordan Goodman. You can find him at Moneyanswers dot com.
As always, Jordan, we appreciate you joining us all right,
Thank you, Todd.
Jordan Goodman is with US America's money answers man. Lots
of things to talk about. Last week, the FED met
and as expected that had been telegraphed quite clearly did
not drop rates, much to the consternation of President Trump
and others. But they are staying the course, Jordan, and
not a surprise, right.
Speaker 2 (00:20):
It wasn't a surprise that they kept things where they
are in June. But there is the possibility now that
they would cut in July. The numbers have been coming
in quite good, inflations down to roughly two percent a
little bit more than two percent. Unemployments about four point
two percent has actually been rising a bitter the employment
markets getting weaker, and the rates that they have now
(00:45):
are about one and a quarter percent higher than the
so called neutral rate. So they're still considered kind of
restrictive in where they are now, and so I think
the consensus is starting to build that they will cut
rates at their July meeting to some extent depends what
happens with TERRAFS. I mean, we still have this July ninth,
(01:07):
the kind of deadline hanging over us as to where
we're going to get tariff deals or not. If we
don't get tariff deals and the tasks go into effect
that could be inflationary. So you know, it's still a
bit of an uncertain situation.
Speaker 1 (01:20):
Which factor is the FED going to consider most outside
of tariff So let's say the things remain status quo,
there are pretty well going forward. What's the next thing
they're looking at most closely to make a decision and
whether to cut rates.
Speaker 2 (01:35):
Inflation and I mean the so called TCE. The person
of consumption expenditure number is down about two point one percent.
That's the key to them. They would like to cut
rates as they could, They just don't want to cut
rates and then have that set off a round of inflation.
Right now, it's not seeming that no one thing that's
changed since those numbers came out is oil. Oil had
(01:57):
gone down sharply in gasoline, and that really contributed to
those lower inflation numbers. That has reversed in the last
week or so because of what's going on the Middle East.
Speaker 1 (02:07):
Of course, always only have unrest in the Middle East,
at least in the short term, it causes oil to spike,
and that is certainly what has happened, and that of
course still has to be played out, Jordan, but a
lot of I guess right now, uncertainty there.
Speaker 2 (02:22):
Yeah, and Iran may respond by attacking American assets all
over the Middle East when we are ready for that.
And the next thing they may do, as crazy as
that may be, is try to close the strain. And
for Moose, last week the Ietola specifically said that, he said,
if they bomb us, we're going to block the Straight
and for Moos where all the oil goes through from
(02:44):
Saudi Arabia and Kuwait and Bahrain and so on, and
we have the sixth fleet there battle back. We might
have an open naval conflict in the middle of the Straight.
And for Moose, that would definitely kind of spook the
oil markets. So oil had been like in the high fifties,
now it's in the mid seventies on all the fear
(03:04):
of this.
Speaker 1 (03:06):
Of course, being able to produce more energy at home
is part of a way to counteract that, at least
in part, and we'll see how it all plays out.
You can reach Jordan Goodman via email Jordan at Moneyanswers
dot com. A housing market right now not good. Buyers
are not really feeling it with some of the things
(03:27):
happening Also, the high rates continue.
Speaker 2 (03:29):
Right so, the latest numbers came out, there are a
half million more sellers than buyers in the home market.
A lot of sellers have been holding back, hoping for
these higher prices, but the buyers have several things stopping them.
First thing is mortgage rates roughly seven percent, which is
just unaffordable for a lot of people. Second thing is
(03:51):
the home prices are higher than they can afford. All
this uncertainty we just talked about, as far as the
Middle East war and interest rates and the TWIFF, all
this stuff has people cautious about making a long term
decision like buying a home. So it's been a terrible
spring season for home sales, and I think it's going
to continue. I don't think any of those things are
(04:12):
going to change in any time soon. So it's a
rough time to sell a home right now, no question
about it.
Speaker 1 (04:18):
Then, I think another thing that you hinted at, their
sellers are not willing to come down in their price.
Speaker 2 (04:24):
Are they well, if they want to sell their homes.
I mean, I mean in some cases they are. There's
definitely some sellers are lowering their price. But even if
the price is down seven percent, mortgage and all of
sudden certainty stops a lot of bias from mornings and movement.
A lot of people would like to buy homes, but
they don't feel it's prudent either financially or with their
(04:46):
life path, or they should do it. I mean, say
you were a federal employee and you think you have
security for life, and all of a sudden you get
laid off. I mean, federal employees aren't buying a out
of homes.
Speaker 1 (04:58):
These days, no doubt about that. Also, speaking of jobs recently,
and I had a guest on my show talk about
the effect of artificial intelligence, it's hitting some of the
jobs at college grads right now might typically be getting
as there's some change going on there, and some recent
(05:19):
college grads are having a tough time finding employment right
It's hard.
Speaker 2 (05:24):
To compete against artificial intelligence because AI doesn't complain, it
doesn't ask for overtime, it doesn't want vacation, It just works.
So yeah, I mean, we've had all these graduations now
and it's a much tougher job market than those last
few years. But the new factor is companies are using
AI to do the jobs that humans used to do.
(05:47):
I was just last week in Seattle and talking to
people from Microsoft. Microsoft laid off about three thousand people
because a lot of their jobs, coding and so on,
are being done by AI today. So this is a
new threat to highly educated, trained people to be battling
against the machines.
Speaker 1 (06:06):
Yeah, and of course the other advantage is AI are
rarely I guess makes a mistake per se. It's all
about garbage and garbage out. And yeah, that's an adjustment
of the job markets for sure. Speaking of adjustments, Jordan,
what's going on with the Big Beautiful bill. They're still.
Speaker 2 (06:26):
Centerate. It's working on I think it's highly unlikely they're
going to pass it and have it ready for President
Trump to signed by July fourth, as he'd been wanting
certain things the Center's putting in the House did not want.
And so it's going to be very controversial if it
can make it through the Senate at all, and if
it does, how it's going to be reconciled with the
House version. So some of the specific areas that are
(06:48):
kind of controversial, the new tax cuts on top of
the renewing of the existing tax cuts. The new tax
cuts for tips over time and SAR security are very popular,
but they drain a lot of revenue from the government
and make the deficits dramatically worse. The state and local
(07:08):
at taxes so called salt deductions. They have been at
ten thousand since twenty seventeen, but that's been raised to
forty thousand in the House bill, and there's some in
the Senate they want to go back to ten thousand.
Some of it wants to be even more. So that's
the whole controversy on the salt deductions. And then the
Medicaid cuts. Some people think it's too dramatic and it's
(07:32):
going to hurt all kinds of rural hospitals. Some think
there should be more Medicaid cuts. So these are major
sticking points that the Senate has to figure out. And
they only have like three votes margin, and Ran Paul
from Kentucky says he's not voting for it at all.
So they're basically down to two votes whether they can
pull this thing off or not.
Speaker 1 (07:53):
And meanwhile, I'm bitcoin and gold to keep on going up.
Speaker 2 (07:58):
Right, So Bitcoin's up to about one hundred and five thousand,
and gold is well over thirty three hundred. The dollar
continues to fall because of all these deficits and the
least we've been talking about in the uncertainty in the tariff,
and so that's the safe haven today. Gold and bitcoin.
I've been saying this for a while with you, Todd.
I think they're going to continue to move up because
(08:20):
those are considered the places they have your money instead
of the US dollar these days.
Speaker 1 (08:25):
That's Jordan Goodman. You can find him at Moneyanswers dot com.
As always, Jordan, we appreciate you joining us all right,
Thank you, Todd.
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