this to hitting the accelerator and slamming on the brakes at the same time because what you have is on the one hand, the bank of england trying to control inflation. trying to cool demand by hiking interest rates while the treasury s pumping money into the economy. so i think that could lead to a bit of a standoff as the time goes on and these two work at cross purposes. we are ready saw the proposals failing as we we look at the markets. in the pound is now at the markets. in the pound is now at $1.08. bond yields have risen, which is incredibly worrying because he s planning on this 45 billion tax cuts. it s going to cost the
monthly payments have gone up compared to earlier this year. i should say, this is the point, the fed wants to cool demand, spending. the thing is, it wants to do it so precisely that it cools demand just enough that you get demand back in balance with supply and inflation starts to ease. if it overdoes it, we re talking about perhaps joblessness and the r word recession. yes. which nobody wants to talk about. but that delicate balance still not clear if everyone has the formula figured out. thank you. you can t have your cake and eat it. the special master calling out the trump team as the trump team dances around whether the former president ever declassified documents seized from mar-a-lago. also this is a travesty of justice, and this judge is a
worried about inflation expec expectations getting entrenched. not only will inflation be transitory but it could be quite persistent and last for years. that s what they re trying to nip in the bud. they re saying we re going to raise interest rates, cool demand, try to do it just enough that they don t get into recession, just enough that price growth slows dramatically, but not enough that we actually have a painful downturn. and it s really hard to to get that to thread that needle. this is typically what is thought and this is typically delusional. it s a very challenging task. i don t know if it s delusional but it s a very challenging task. you are talking about the largest economy in the world, a global phenomenon, inflation is not just an united states phenomenon, because the supply chain is the catalyst at the end of the day. if i m choking off available baby formula is the most famous one, but cars also with the
make more money from the higher prices. sometimes the high prices actually start to cool demand, also start to incentivize more production. we ll be watching it. nice to see you. the january 6th committee asking republican congress for more information about this tour group which he led into the capitol complex on the eve of the insurrection. more on that new video and details next. when it comes to safety, who has more iihs top safety pick plus awards ththe highest level of safety u can earn? subaru. when it comes to longevity, who has the highest percentage of its vehicles still on the road after ten years?s? subaru. and when it comes to brand loyalty, who does jd power rank number one in the automotive industry for three consecutive years? subaru. it s easy to love a car you can trust. it s easy to love a subaru. if you wake up thinking about the market and want to make the right moves fast. get decision tech. for insights on when to buy and sell.
so the fed has to do more. so, if we think about the impact of raising rates it slows demands which, by the way, is exactly what they want. the concern is the fed will have to raise rates so much it pumps the brakes on the economy. that s why we re seeing the massive selloff across major asset classes. just to put a fine are point on that, what does it mean for average regular people if the fed did raise rates and if they raise is more than expected? just look at the mortgage rates right now, right? they re closer to 6%. at the beginning of this year, it was 3%. i was talking about this last week, then it was 5.3%, it s spiking quite dramatically in a short period of time. what it means if you re in the market for a house your borrowing costs have gone up. everything is more expensive. that s what the fed wants us too do, stop spending so much. it wants to us cool demand. the issue, however, if they overdo it, they might do more