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    THE FED JUST CRASHED THE MARKET | Major Changes Explained



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    THE NOVEMBER 2022 RATE HIKE:

    They began by raising interest rates by 75 basis points, which was what the market expected…but, their FINE PRINT caught everyone by surprise:

    Even though their intentions were to raise rates so that it’s “sufficiently restrictive to return inflation to 2 percent over time,” they followed that up by stating that they will take into account “the lags with which monetary policy affects economic activity and inflation, and economic and financial developments” – and, this is MASSIVE.

    Companies, for example, won’t know their sales numbers until the end of the month or quarter…housing data won’t show up for another 60 days…consumer spending is highly volatile based on a number of factors, and – by the time WE see the end-result of each policy decision, months have already gone by.

    By acknowledging these lags, it gives the Federal Reserve enough time to pause, slow down their hikes, adjust as needed, and basically take a “Wait and see” approach without driving the economy into a total disaster.

    HOWEVER…the BAD NEWS is that, there is the concern that inflation will become “entrenched” within the economy, meaning that – consumers believe that inflation will continue to rise, and THAT will reach certain categories which are unlikely to come back down, like rent and medical services.

    If this happens, it’s possible that we’ll need EVEN MORE rate hikes…and even more pain within the economy…so, to prevent this from happening, the FED mentioned that they may have to take more extreme measures AHEAD OF TIME…and THAT is why the market immediately began falling.

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    View 43 Comments

    43 Comments

    7. Robert Jasmine on

      Amazing video and thank you for breaking it down!! Despite the economic downturn, I'm so happy 😊I have been earning $ 60,000 returns from my $9,000 investment every 21days.

    8. Madhu N on

      Dude…. hold on… slowdown take a chill pill and share your information a little slower use periods, question marks, etc. What are you..? Are you a youtuber or news reporter??

    15. Tony on

      So you raise interest rates to curb spending but the federal government spends like drunk sailors so how does that really effect anything? Is the federal bank getting this rate hike on the money the government spends?
      Well here is to hoping to win that 1.5 billion dollar jackpot

    16. MIC JACK on

      With 4.1 million subscribers, getting nearly 300k in views in less than 12 hours probably makes him more money than the interest of anything he has invested for stocks in the past 10 years.

    17. Davi Pereira on

      In the current case, a significant portion of the inflation is caused by supply chain disruptions. To reduce current inflation the government should be using tax incentives to compensate consumers for delaying their purchase of homes and other high priced items until next year and the following years, when the supply chains should be more stable, and our productive capacity will be restored. This would allow people to save more money, while demand is reduced, instead of the Fed taking away their money to reduce demand.

    23. Marcus Vincent on

      I just started investing and it's kind of stressful to see everything dropping like this – makes me want to wait before buying, I feel like my timing is pretty good as I could potentially gain a lot from this market crash 🙂

    24. infinite p on

      I disagree about timing the market. But I usually disagree when told “ no one can…….” If you are investigating for a return 10 or 20 years from now, you are timing the market. Some of us time it on a smaller time frame.

    26. FabiWan on

      It's money printing that pushes inflation higher, not wages. Wages are just trying to keep up with the printer going brrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr

    27. MeBigota on

      And the biggest market decline occurs when they start cutting interest rates, study history,, many wrongly think when they pause or cutt rates will be bullish for the stock market, wrong..

    28. Mark minister on

      No mention of upcoming hyperinflation, budget deficits, trade deficits, Mal investment, negative interest rates, nor Austrian economics. You know nothing or understand how the system works-

    32. Trazz Palmer on

      I appreciate your honest reporting. I admire you a lot for educating everyone. It all depends on the information and method applied. I've seen people earn significant 7-figure profits in sinking markets and pull it off just as easily in bull markets. There is no doubt that the crash/recession is making someone wealthy.

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