Richard Rosso - Financial Planner Joins Houston's Morning News

Episode Transcript

Speaker 1 (00:01):
You too. Now you're in Houston's Morning News.

Speaker 2 (00:02):
All right, The question is, but the December meeting coming up,
will the FED cut interest rates again? Richard rosso joins
US financial Planner with what he thinks is likely to happen.
What it means.

Speaker 1 (00:14):
Good morning, sir, Good morning Jimmy.

Speaker 3 (00:17):
You know, the Fed's presence is an assault on all
of us.

Speaker 1 (00:22):
I don't disagree with you on that.

Speaker 3 (00:25):
Unfortunately, Well, there's an eighty nine point six percent chance
that the FED will cut rates, so that looks pretty clear.
But realize the FED is going into this situation after
an extended government shutdown, so we have the Labor Department
will release some reports this week, it'll be after the

(00:46):
said meeting, so you know, they're sort of flying blind,
and the dual mandate for the song is really shuffling
them back and forth in a state of confusion.

Speaker 2 (01:00):
Okay, for sure, would they be better off just maybe
leaving everything the way it is until they can kind
of see what's going on here.

Speaker 3 (01:08):
That's been talked about, and I think that is part
of the problem that the FED and the Committee is
having right now, especially with the lack of data. The
problem is the market wouldn't like it very much. And
we all know since financial crisis, the FED really spends
a lot more attention looking at the market than probably
even the President does. So the odds are with the

(01:32):
labor market weakening or job freeze going on, and inflation
is sort of stable. When you look at all the
metrics from the Atlanta Fed, you'll see that for the
most part, you know, they're two and a half to
three percent. The Atlanta Fed sticky CPI, which I follow,
is down to three point three percent.

Speaker 1 (01:50):
But again these.

Speaker 3 (01:51):
Are all you know, these are all not part of
the Fed's target, the two percent target, which they're way above,
and that's what's really troubled them. And they don't really
understand what's going on with unemployment and the job market.
You know, is it just because immigration is where it
is today or are people losing jobs with it. It's

(02:12):
really a tough you know, this flying demand of labor
is really nebulous for them right now.

Speaker 1 (02:18):
Right Does the FED take a look at housing or not?

Speaker 2 (02:20):
Does that matter to the Fed what's going on in
real estate, whether homes are selling or not selling.

Speaker 3 (02:25):
Not really if they're looking at an equivalent to a
price that they use in other words, they don't even
include property taxes into their homeowners insurance into their equation.
And we know where that inflation is good, right, Oh yeah, okay,
so they're not even counting that. So you know, most
likely you're going to get it. Here's the problem going

(02:47):
into January. We're going into this misty period. But you
also have a time now when we know Powell is
gone next year, and we know whoever President Trump puts
in is going to be very accommodative on every inch
of that yield curve, lowering rates on the short end,
probably bringing back quantitative evening, lowering rates on the intermedia

(03:08):
long term end, which would help mortgage rates. So we
know there's gonna be a point where the market's not
paying attention to Powell anymore. And I think it's already
happening because of May twenty six and powells out.

Speaker 1 (03:19):
All right.

Speaker 2 (03:20):
Always good to get your inside. Thank you, Richard, appreciate it,
Bry Christmas, Happy New Year, Richard Rotten. In case I
don't talk to you before then, Richard rosso Financial Planner,
It's five fifty six