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URGENT: Federal Reserve Announces MASSIVE Rate Cut, Bailout Begins!



URGENT: Federal Reserve Announces MASSIVE Rate Cut, Bailout Begins!

Get free life insurance quotes from America’s top insurers and start saving today with Policygenius: https://Policygenius.com/graham | Thanks to Policygenius for sponsoring this video! Let’s discuss the Federal Reserve Rate Cut and what this means for the stock market, housing prices, and your money | Add me on Instagram: GPStephan

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THE AUGUST INFLATION REPORT:
It was just reported that inflation only rose by 0.2% in August, which was the lowest level since February of 2021. This effectively puts the 12-month inflation rate at just 2.5%, with Energy being one of the main culprits, having fallen 4%. On top of that, Used Cars and Trucks have declined 10%, new vehicles are down 1.2%, and oil is down 12.1% over a year.

THE STOCK MARKET:
Since the market is always forward-looking, stocks might sell off because rate hikes have already been priced in. For instance, one Investing.com analysis made the argument that investors “front-run” and anticipate future rate hikes – or cuts – and therefore, everything that happened today is already factored into where it’s trading. In terms of what’s most likely to happen in the future, history tells us that it all depends on whether or not we avoid a recession, which means according to all of the data, it appears as though rate cuts do not make AS BIG of a difference as people make it out to be, compared to the overall health of the economy.

HOUSING PRICES:
The good news – for buyers – is that prices are starting to get cut. A recent report found that “The share of available listings that saw a price cut in July rose to 18.9%, causing the median price to fall from $445,000 to $439,000.” Realtor dot com says there are two reasons for this: First, interest rates remain higher than expected (which means less buyer activity) and, two, a lot of would-be buyers are holding out for lower mortgage rates in the future – so, sellers are reducing their prices to entice them back.

In terms of rental prices, new data found that one-in-three property managers offered a concession on rents amid a glut of supply. Apparently, multi-family construction is on the rise, with “more units completed in June than in any month in nearly 50 years.”

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View 44 Comments

44 Comments

  1. @GrahamStephan on

    -Get free life insurance quotes from America’s top insurers and start saving today with Policygenius: https://Policygenius.com/graham
    -Here is a link containing the source material for each piece of research cited. I do my best to make my videos as accurate as I can, and the additional resources should help anyone who wants to look into them further – enjoy! https://docs.google.com/spreadsheets/d/1tc8aOfMzLF3AJvUIH6aZB9AguTwn3i7aUJh3J7wMaRo/edit?usp=sharing

  2. @f3nd13y on

    Don’t be confused, a lower rate will not let you suddenly afford a house. It’s going to make it harder since there will be more competition (higher prices) since the supply hasn’t changed.

  6. @getinthespace7715 on

    🥸 Historically, rate cuts indicate the party is over and things are going bad.
    The fed is cutting rates because the labor market has completely collapsed, even though core inflation is on the uptick. 0.33% m/m or 3.96% annualized

  9. @Filippoendemione on

    Excellent!! Everyone needs more than their salary to be financially stable. The best thing to do with your money is to invest it rightly, because money left for saving always end up used with no returns

  15. @maverillion4610 on

    I’m a fresh masters in cs graduate, hopefully the interest cut makes finding a job actually possible now… otherwise I’m gonna just go back to school for a mba and change careers

  16. @christopherbauer07 on

    Graham, can you help me with tax / business structure advice? I am a local LV landlord and small business owner. The advice in your videos, the advise I listened to, has made me money. I was hoping you could help with a few quick questions. LMK, thank you

  20. @lesliesmith7312 on

    Technically, I am employed. Only I am scheduled so few hours I end up making about 350 every two weeks. I think the people making calling the shots, both within companies and within the government, should try living on 700 a month

  26. @deelehey2827 on

    Rate cuts are politically motivated. The fed is controlled by the current administration. Dems try to fool the common American into believing that they are “fixing” your financial problems.

  32. @richstewart9904 on

    Blah blah blah. Here’s the truth in a nutshell. Cheap money creates rapid growth but at the risk of overextension. Rapid growth creates a false sense of security that advocates for people taking more risk based on unrealistic gains. That false sense of security creates losses due to over speculation and confidence. After a long period of draw down speculation turns into hesitation creating bottlenecks in sectors of the economy. Uncertainty enters the market and risk limits the availability of credit and raises the cost. Prices drop due to lack of available cash and credit. Eventually the economy rebalances to meet GDP projections. Then interest rates drop significantly to propagate growth again. This is a cycle that has happened and will happen again. Unfortunately, trying to stave it off has caused more damage than it should have and will continue until responsible fiscal policies are enacted.