Richard Rosso - Certified Financial Planner Joins Houston's Morning News

Episode Transcript

Speaker 1 (00:01):
All right, let's talk about money. Let's talk about interest rates,
which are likely to stay the same. I'm guessing that's
probably what the Fed will announce, So I don't think
anybody would be surprised by that. They'll all be paying
attention to what kind of language, what kind of Fed
speak they use, in order to talk about what they
might do in the not too distant future. Richard rosso
joins a certified financial planner. I know Trump has lobbied

(00:23):
very hard for lower interest rates. Not likely to happen today, is.

Speaker 2 (00:26):
It, No, Jimmy, it's not.

Speaker 3 (00:30):
We're not really looking for any kind of change to
interest rates today.

Speaker 2 (00:33):
But keep this in mind. If you listen to Scott, dosn't.

Speaker 3 (00:38):
You hear that they are really looking at the intermediate
and long term end of the yield curve, right? They
want those rates to come down, and they have rights
because that might affect mortgage rates and other things. So
there's not as much focused on the short end of
the curve as there is on the intermediate, longer temp
end of the curve. And you have noticed also that

(01:00):
I think anyway, because President Trump's very vocal, he hasn't
really said anything about Powell.

Speaker 2 (01:05):
He hasn't really talked about it. He doesn't bring him up. Now.

Speaker 3 (01:10):
If the economy starts slowing down, then I think that
he will be in Trump's crosshairs and there will be discussion.
This is the whole debate. Will Powell last through his
tenure that ends in May of twenty twenty six.

Speaker 1 (01:25):
Yeah, And from a practical STANDBOYT, let's say Trump would
like to fire the guy. Can he fire the guy?
Not really? Canny?

Speaker 2 (01:33):
No, not really no. I mean he could try, But again,
I don't know if he really wants to upset the.

Speaker 3 (01:38):
Apple cart with that, because it's just coming so close
to the end that I don't really know who he
has in mind for fed chair. So keep in mind again,
you're in this economic stalemate process here where we do
have still have economic growth. Inflation is subsiding, and wage
growth has steadied, it's increased a little bit, but you're

(02:02):
in this sort of like this this purgatory where rates
can't really do anything. We need to see the further
effect of President Trump's policies on the economy before the
short end goes. So you're gonna hear probably a lot
of that from Powell today, that there's uncertainty with TIFFs
and with relations with other countries, and we need to

(02:26):
see where that's going to go. Now, we'll say that
there is summary of the summary of economic projections. They're
looking at say two twenty five base that great cuts
this year, and so when you start looking at expectations,
there are expectations for.

Speaker 2 (02:42):
Later in the year two to three cuts.

Speaker 3 (02:44):
I think if things really start to slow down based
on the policies. And also, frankly, the economy started slowing
down last quarter. Okay, it started the fourth quarter when
the stimulus, when we started to follow the stimus really
start to dry up. Right, So you're moving from this
government driven economy me to the private sector. That's something
that's got best and calls reprivatization. That is not going

(03:06):
to be an easy process, right because free money is
always happy money for everybody, and the market doesn't care
about red and blue, it cares about green. So with
less money in the system, that's the issue we're going
to have. So we're still looking at rate cuts for
this year, depending on how things go. It's just not
going to be as it's just not going to be
as simple and it's going to take a lot longer
than people donect.

Speaker 1 (03:25):
Not as fast as we would like, Richard Rosso. Always
a pleasure, sir, Thank you so much. Serve by financial
planner Richard Rosso seven twenty seven