Dow Craters After Interest Rate Hikes and a Bad Outlook
The Federal Reserve hiked interest rates .75 today, putting the country into a deeper recession. It’s their best hope of stopping inflation. Yahoo Finance reports “more large increases to come in new projections showing its policy rate rising to 4.40% by the end of this year before topping out at 4.60% in 2023 to battle continued strong inflation.”
This should doom Democrats in November.
This morning, the market was up, but the Dow cratered to 522, S&P and Nasdaq down 1.7%.
Nasdaq is down 28.3% in 2022, S&P 500 is down 20.48% in 2022, and Bitcoin is down 58.9% in 2022.
Gas prices rose after a down streak while Joe Biden bled the emergency reserves.
AAA data shows the average price for a regular gallon of gasoline rose by almost one penny to $3.681 per gallon from $3.674 after steadily falling every day since early June. Motorists paid $3.192 a year ago.
Premium gas prices increased to $4.434 from $4.427. A year ago, premium sold for $3.820.
FedEx and other companies expect a recession. According to CNN, economic bellwether FedEx (FDX) stunned Wall Street last week with a massive earnings warning and tepid outlook for the global economy.
FedEx’s bad news overshadowed a more promising development on Thursday, the agreement between railroad operators and unions to avoid what could have been a crippling freight rail strike.
Best Buy, Applied Materials, PVH, and others are concerned.
Existing home sales have fallen too, reports CNBC.
According to the National Association of Realtors, sales of previously owned homes fell 0.4% in August from July to a seasonally adjusted annualized rate of 4.80 million units.
That is the slowest sales pace since June 2020, when activity stalled very briefly due to the pandemic’s start.
Outside of that, it is the slowest pace since November 2015.
The mortgage industry has begun layoffs too. Axios says, “The housing market tends to lead the broader economy both into and out of recessions,” Mike Fratantoni, chief economist at the Mortgage Bankers Association, tells Axios.
Rate cuts are not foreseen until 2024.
Traitor Joe and the Democrats have driven America in a Drepession in under 2 years. A 25% loss in buying power is a Depression. Add to that Traitor Joe is turning Cash into Trash and setting the Markets up for a Crash. If you are under 60, your retirement saving is now trash. If you are retired, your retirement Saving will trash in a year, that is if you got out of the Market a year ago.