Today it was announced by the fed that increase rates would remain the same and that a decrease was not yet ready for the first post-pandemic cut. That now puts us into September as being the first rate cut and so far the Fed is also being a little shady in terms of thinking they are going to decrease it.
This is because as much as the Biden administration tries to save face right now saying that inflation is low etc. It's not and it's not by a long shot. The USD is losing value by the day as many competitors launch. Many of these competitors hold the world reserves for oil, gold and other minerals which are key to every day life today including military and the USA doesn't hold much of it.
BRICS for example has some of the larger manufacturing countries ever followed by one of the richest in terms of oil and natural gas. These countries are also now pressing for more. As Ukraine gets invaded by Russia make no mistake this war is about resources as all wars are. You see the top left of Ukraine where Russia is focusing is extremely rich in natural gas. So much so that it once supplied all or nearly all of the natural gas that the EU needed. It's honestly in the best interest of all of the EU for Ukraine to win if they want their energy secure for the next 100 years.
Bitcoin is also one that pushes against the USD and while other countries are grabbing it up and supporting mining operations etc the USA continues to sit around with their thumb up their butt and trying to control it and drive it out of the USA. Completely stupid but that's the type of people running the country at the moment. Yes, I know my posts lately have been a little political but it's not hot air with no facts etc backing it up. It's proven points of where we would be headed depending on who gets elected come November.
The current annual inflation rate is now 3% which might not seem high but it's 1% to 1.5% higher then what it should be. The July inflation number to come in will not be coming out for another two weeks. With the hints that the fed gave today I'm not expecting that number to come in at around 3.5% and show a small increase instead of a decrease.
This is mainly because if there was a decrease that put us at 2.something % I feel the fed would have warmed up to reducing rates.
Sure I do expect a rate cut at some point this year and this will most likely come just in time for the election I'm sure of it. But make no mistake that 3.0% was the SAME rate we saw in 2023 and then climbed back up to 3.5% by December. I don't think we are out of high inflation rates just yet and the only thing keeping it at 3% is the high fed rate which is causing other countries to have to pay us some serious money back.
The biggest issue with any of this is that the USA has a revenue issue. A huge issue that no one seems to want to correct or event slightly attempt to correct.
In terms of the next few months I feel like things are going to be rather rocky and you wont go wrong in trying to increase your income and your savings/investments as much as possible such as hard and digital assets.
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