Fed rate hikes during a recession could possibly be explained by the need to prop the US dollar.
Hopefully, the US soon will realize that real money doesn’t grow on trees! MMT is an unhinged theory that acts to undermine the confidence people have in the integrity of the US dollar.
Gas prices are playing a huge role in consumer spending as reported by a number of restaurant chains but also most recently by AutoZone.
90% of Lowe’s customers have existing fixed interest rate mortgages (sub 3%) & are immune to Fed rate hikes.
Why doesn’t the Fed ensure the availability of affordable mortgages in order to support the residential real estate market?
Comments from Dollar General’s CEO shed light on their consumer’s financial situations.
The Federal Funds Rate is the short-term interest rate at which depository institutions lend overnight to each other within the Federal Reserve system.
Total home sales declined -11% y/y during 2Q22 as the 30-year fixed rate mortgage increased from 3% during 2Q21 to 5.2% in 2Q22.
The decline in vehicle sales illustrates how our current bout with inflation is a function of supply shortages as opposed to an over-heated economy.
Gas prices and consumer confidence are directly correlated.