Financial Strategist Bill Dendy talks hiring in the US

Episode Transcript

Speaker 1 (00:00):
Government is still shut down, and the implications and the
impact of all of this is slow, but it is
starting to affect more and more people the longer this
thing goes. We certainly have seen the crunch when it
comes to air traffic controllers. Now, news breaking out this
morning that Mike Johnson, our speaker, says if this continues,
there's some threat military may not get paid our fed share.

(00:22):
Jerome Powell has talked about interest rate cuts one possibly
two by the end of the year now, but he's
saying I can't make any decisions until I get the
data needed to make that decision and the people that
supply the data, our government workers that have been furlough
joining us now to talk about this long term impact
on hiring and what's been going on financially. Bill Dendy,
our buddy financial strategist, is with us. Bill, Good morning, welcome.

Speaker 2 (00:45):
In, good morning. It's great to be with you. And
I tell you it's kind of confusing when you depend
on the data to keep the economy working, and we
know the economy might not be working like it should,
but you can't get the we had to back it
up and it was interesting this week. Jerome Powell basically
came out and said, even though I can't get the data,

(01:07):
I don't think much has changed since September. If anything,
things have probably gotten a little bit worse in the
job markets. So it sounds like he's still prepared to
do that rate cut the end of this month and
another one before the year is out, which which would
be very very positive for those who are carrying a
credit card debt. It's very positive for the economy. His concern,

(01:31):
what many waits for long, is he's worried that if
we glow with these interest rates and we spark up
the economy a little bit, that might spark up inflation again.
And he just spent that long battle trying to quell inflation,
so he didn't want to then bring it right back
by lowering rates too quickly. But I think a lot
of evidence is out there that maybe it's time to
go ahead and lower these rates.

Speaker 1 (01:52):
Yeah, you said something really interesting and I think pretty
important in all of this, where the FED chair said,
I don't think things have changed. You know the fact
that you're having a guess as the FED share You
know it was troublesome, but once again, you know, you've
got to have the data to support what you want
to do, and if he doesn't have it, he's kind
of rolling the dice with a blindfold on. But I

(02:12):
don't think that there's going to be any problem with
at least one interest rate cut in. We should probably
take it and like it. Maybe two that would be awesome,
because at this time of the year, fourth quarter, a
lot of corporations start looking at their bottom line planning
for twenty twenty six budgets and there's a lot of
cuts going on. So the hiring, right you know, the
hiring is slowing down as well, so you know you

(02:33):
got to do something to boost the economy to balance
out what's the reality of corporations and employees and employer
situations exactly.

Speaker 2 (02:41):
And it seems to be these months October, November, December
are the favorite months to go ahead and announce layoffs
and let some people go. It's a situation that some
big companies that haven't done it in a while are
doing that. So it seems like the companies are betting
that the economy is not going to go row is
quickly into your cheer if we're starting to see some

(03:02):
of these layoffs as well. All right, Bill, I'm want
to get it. I'm sorry, good chairman said, his mandate
is to keep inflation under control, but just as important
as to keep Americans employed. And as we start to
see the employment, our unemployment numbers take up, that's when
Jerome Piles says that that takes over and he's going
to go ahead and do what he needs to do

(03:23):
to keep this economy going strong enough to keep people
on jobs.

Speaker 1 (03:26):
All right, I want to talk to you about what's
going on with the government shutdown now. The big sticking
point seems to be the subsidies in continuing those through
Obamacare for those that you know need it. On the
Democratic side of things, they want to give it to
illegal aliens. Uh, And they just are not budging on
this or whatsoever. The Republicans are not budging on it either.
So your thoughts on what's going on with the Senate

(03:47):
right now, and it doesn't look like there's any end
in sight right now, and we're coming up on the
November twenty first deadline, and then what and the impact
what is going on with the stalemate on our economy
as well, So first your thoughts on Congress and the impact,
then on what it's.

Speaker 2 (04:02):
Doing Congress is playing a big game of chicken. Both
sides are hopeful that the bad fallout is going to
be felt worse on the other side. And I believe
that it's one of the situations that most people don't
notice the government shut down. I know a few few
parks aren't open, and air traffic controllers are starting to grumble,

(04:25):
and we don't have those massive sick call ins to
happen the last government shut down just yet. But military
people are not getting paid. They always in the past
have gotten their money. So it's like a very big
inconvenience to a group of people. But the average American

(04:48):
goes about their daily life without feeling much pain. It's
going to be so far suddenly having these bills come
in that are twice as high as they had before
for people suddenly feel a lot of pain, and then
everybody wants a resolution. And I think what's going to
happen is the Republicans are going to say, we're going

(05:10):
to agree to give the subsidies for those who are here,
and we're going to agree. It's the Democrats who are
causing you to have to pay this bill. They say
they're supporting you, but they're not because we're willing to
do that, and of course the Democrats are going to
say no, the Republicans causes shut down because they're trying

(05:31):
to scrap Obamacare. They've always hated this thing and this
is their chance to get rid of health care for all.
Both sides have got their talking points down. Both sides
think that if it gets to that point, it's not
going to be pretty. But it may take getting to
that point to get a resolution. Yet. It's a big
game of chicken, and I think that you might see

(05:51):
that last moment negotiation because you really don't know how
it's going to go, and it's kind of like going
to the before the judge. How many lawsuits get settled
outside on the steps of the courthouse because you just
don't want to take the chance that the judge or
the jury doesn't side with you. Because other sides got

(06:12):
some good points. So we might see that, but we're
going to push it right up to the end, I believe,
because they're both pretty dug in.

Speaker 1 (06:19):
All right, very good. I just see Johnson saying the
military may be next as far as not getting paid,
and that really kind of bugs me there. Well, Bill,
thank you so much. I appreciate you. We'll do it
again soon.