Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Now you're in Houston's Morning News. No surprise, jerme Powell
and the Fed they are holding raids steady, noting rising
uncertainty and a risk of stagflation. Richard rosso joins a
certified financial planner. They also said they're behind the curve
and they know it and they don't care. So what
do you make of that?
Speaker 2 (00:22):
They they have TDS Tariff Derangement Center.
Speaker 3 (00:31):
The the hard data on the economy has been good.
Speaker 2 (00:35):
The PCE, which is a FED that follows the FED,
it was at two point six percent last year. At
this time it's two point three in flesh and is
headed down. The economy is doing well, but the FED
is notoriously and always behind the curve.
Speaker 4 (00:54):
Remember when inflation was transitory, Oh yeah, that that little ditty,
Oh yeah, and if that didn't do anything to raise rates,
when we had a physical bomb that went off and
then figured that this was no big deal.
Speaker 2 (01:07):
They think that the supply chain issue is going to be
the same that it was then, that that that's going
to happen now because of tariffs. So again they're going
to be late. But the one thing I know, I
know President Trump gets really upset with pwell, he's been
raging over on uh over and overnight, and that's perfectly fine.
But in some ways Powell is validating some of the
(01:30):
stuff that's coming out of the White House, like the
economy is strong. You know, they should go along with
that line and stop having him worry about lowering rates.
The economy is strong, The hard data is good. Yeah,
consumer sentiment is at the worst I've seen since the
Great Recession. Uh, that's ridiculous. The S and P is
down nearly four percent, and if you have a balanced
(01:52):
portfolio of bonds and stocks, you're probably slightly up this year.
But you would think the whole world's coming to an end. Obviously,
Powell believes.
Speaker 3 (01:59):
In higher world is coming to an end as well. Well.
Speaker 1 (02:02):
You know, I think I think for your average consumer,
consumer confidence is low because we've been dealing with inflation
here for the last four years and and and inflation
is going down, but it's it's not going to reverse itself,
so we're still dealing with the higher prices that we
have been dealing with. Interest rates remain high, at least
not historically high, as you and I both know, but
but high compared to what people got used to. So
(02:24):
the real estate market is stagnating somewhat, So those kinds,
those are the kinds of things that worry consumers.
Speaker 2 (02:32):
It is, and I know I've said it on the
show before, but then no president is going to be
able to come in and lower the prices you're paying.
Speaker 3 (02:40):
Today for actual goods.
Speaker 2 (02:42):
Those prices, once companies raise them, it's very difficult to
lower them. So you've got to look at the rate
of change on prices as we move forward. But the
price you know, when you look at insurance prices, things
that have gone up dramatically, it's very difficult for those
to go down. Mortgage rates is also they are also
an element of supply and demand. We haven't had as
(03:05):
much supply in the market, and you know those will
eventually moderate. The one thing I will say if your investor,
it's nice to know that you could actually get still
close to four percent on cash and safe investments. That
has actually helped you. Bonds are having a really good year,
so you got to keep perspective.
Speaker 3 (03:25):
You know, Sky might not.
Speaker 2 (03:26):
Be made pay more for his inflatable snowman that's going
to go on as lawn this holiday season. But the FED,
I think is absolutely overreacting, just like they underreacted and
told us that inflation was just temporary even though everybody
was paying close to nine percent or more on all
the goods that they purchased and services that they use.
Speaker 1 (03:46):
How much of a difference do you think it would make,
Richard rosso if if we make a big deal supposedly
there's could be a big announcement coming I think tomorrow
regarding probably the United Kingdom in a trade deal. If
we start picking off some of these trade deals, how
much of a difference do you think that might bank?
Speaker 2 (04:02):
Well, it helps, It helps with animal spirits, It helps
with consumer sentiment. Maybe the whole world isn't coming to
an end that the mainstream media is talking about, and
that absolutely helps. It adds a level of certainty to
the stock market, but it also adds a level of
certainty down to the consumer. Even if they're paying higher prices,
(04:26):
they'll feel there about the economy and maybe there are
other deals that are happening.
Speaker 3 (04:30):
So what that does. It helps with.
Speaker 2 (04:32):
The soft data, the sentiment data you're talking about right now.
You also have to keep in mind something very important, Jimmy,
Some of this soft data is influenced by politics. Now,
these are surveys, right, so keep this in mind. Where
you are on the political side is affecting these So
(04:54):
this is what concerns me about all these consumer sentiment
market sentiment data. Market sentiment is the worst we have
seen since the financial crisis, and that's with the S
and P down barely four percent. Those two things don't
match up, which tells me that there is a lot
of politics that infiltrates this data. Now, I think you're
right about that makes it increasingly unreliable. But yes, if
(05:17):
we can get these trade deals and we can get
Scott Besson out there to talk more about it, because
he's very intellectual and calming when he's out there, that
will eventually bring prices down. Energy prices that presents working
on will bring prices down.
Speaker 1 (05:31):
I'm late, as I'm always am. Thank you, Sarah's always
for your time, especially so early in the morning. That
is Certify Financial Planner Richard Russo, it's five fifty eight
Now you're in Houston's Morning News. No surprise, jerme Powell
and the Fed they are holding raids steady, noting rising
uncertainty and a risk of stagflation. Richard rosso joins a
certified financial planner. They also said they're behind the curve
and they know it and they don't care. So what
do you make of that?
Speaker 2 (00:22):
They they have TDS Tariff Derangement Center.
Speaker 3 (00:31):
The the hard data on the economy has been good.
Speaker 2 (00:35):
The PCE, which is a FED that follows the FED,
it was at two point six percent last year. At
this time it's two point three in flesh and is
headed down. The economy is doing well, but the FED
is notoriously and always behind the curve.
Speaker 4 (00:54):
Remember when inflation was transitory, Oh yeah, that that little ditty,
Oh yeah, and if that didn't do anything to raise rates,
when we had a physical bomb that went off and
then figured that this was no big deal.
Speaker 2 (01:07):
They think that the supply chain issue is going to be
the same that it was then, that that that's going
to happen now because of tariffs. So again they're going
to be late. But the one thing I know, I
know President Trump gets really upset with pwell, he's been
raging over on uh over and overnight, and that's perfectly fine.
But in some ways Powell is validating some of the
(01:30):
stuff that's coming out of the White House, like the
economy is strong. You know, they should go along with
that line and stop having him worry about lowering rates.
The economy is strong, The hard data is good. Yeah,
consumer sentiment is at the worst I've seen since the
Great Recession. Uh, that's ridiculous. The S and P is
down nearly four percent, and if you have a balanced
(01:52):
portfolio of bonds and stocks, you're probably slightly up this year.
But you would think the whole world's coming to an end. Obviously,
Powell believes.
Speaker 3 (01:59):
In higher world is coming to an end as well. Well.
Speaker 1 (02:02):
You know, I think I think for your average consumer,
consumer confidence is low because we've been dealing with inflation
here for the last four years and and and inflation
is going down, but it's it's not going to reverse itself,
so we're still dealing with the higher prices that we
have been dealing with. Interest rates remain high, at least
not historically high, as you and I both know, but
but high compared to what people got used to. So
(02:24):
the real estate market is stagnating somewhat, So those kinds,
those are the kinds of things that worry consumers.
Speaker 2 (02:32):
It is, and I know I've said it on the
show before, but then no president is going to be
able to come in and lower the prices you're paying.
Speaker 3 (02:40):
Today for actual goods.
Speaker 2 (02:42):
Those prices, once companies raise them, it's very difficult to
lower them. So you've got to look at the rate
of change on prices as we move forward. But the
price you know, when you look at insurance prices, things
that have gone up dramatically, it's very difficult for those
to go down. Mortgage rates is also they are also
an element of supply and demand. We haven't had as
(03:05):
much supply in the market, and you know those will
eventually moderate. The one thing I will say if your investor,
it's nice to know that you could actually get still
close to four percent on cash and safe investments. That
has actually helped you. Bonds are having a really good year,
so you got to keep perspective.
Speaker 3 (03:25):
You know, Sky might not.
Speaker 2 (03:26):
Be made pay more for his inflatable snowman that's going
to go on as lawn this holiday season. But the FED,
I think is absolutely overreacting, just like they underreacted and
told us that inflation was just temporary even though everybody
was paying close to nine percent or more on all
the goods that they purchased and services that they use.
Speaker 1 (03:46):
How much of a difference do you think it would make,
Richard rosso if if we make a big deal supposedly
there's could be a big announcement coming I think tomorrow
regarding probably the United Kingdom in a trade deal. If
we start picking off some of these trade deals, how
much of a difference do you think that might bank?
Speaker 2 (04:02):
Well, it helps, It helps with animal spirits, It helps
with consumer sentiment. Maybe the whole world isn't coming to
an end that the mainstream media is talking about, and
that absolutely helps. It adds a level of certainty to
the stock market, but it also adds a level of
certainty down to the consumer. Even if they're paying higher prices,
(04:26):
they'll feel there about the economy and maybe there are
other deals that are happening.
Speaker 3 (04:30):
So what that does. It helps with.
Speaker 2 (04:32):
The soft data, the sentiment data you're talking about right now.
You also have to keep in mind something very important, Jimmy,
Some of this soft data is influenced by politics. Now,
these are surveys, right, so keep this in mind. Where
you are on the political side is affecting these So
(04:54):
this is what concerns me about all these consumer sentiment
market sentiment data. Market sentiment is the worst we have
seen since the financial crisis, and that's with the S
and P down barely four percent. Those two things don't
match up, which tells me that there is a lot
of politics that infiltrates this data. Now, I think you're
right about that makes it increasingly unreliable. But yes, if
(05:17):
we can get these trade deals and we can get
Scott Besson out there to talk more about it, because
he's very intellectual and calming when he's out there, that
will eventually bring prices down. Energy prices that presents working
on will bring prices down.
Speaker 1 (05:31):
I'm late, as I'm always am. Thank you, Sarah's always
for your time, especially so early in the morning. That
is Certify Financial Planner Richard Russo, it's five fifty eight
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Special Summer Offer: Exclusively on Apple Podcasts, try our Dateline Premium subscription completely free for one month! With Dateline Premium, you get every episode ad-free plus exclusive bonus content.
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!