some ways their path is made both more easy and more difficult, easier and more difficult by these numbers. they definitely have to keep hiking, no question, because, you know, we are seeing strong inflation, we are seeing that in wages, which is something that, you know, we want more money in people s pockets but you also don t want an overheated labor market. they re going to be hiking. that, in turn, could bring the stock market down. more individuals are invested in the stock market today than they have been in the past, so as the market comes down what is it going to do to the wealth effect, to how people feel about how wealthy they are? that s that kind of very, very careful, thin needle that has to be threaded by the fed right now. all right. so for the many who have jobs, who are gainfully employed now, but to keep up with the rising inflation is now a good time for them to go into their management office and ask for a raise? i say yes. you know, i have been doing this
spending was just about zero so consumers are running fast, but it s like they are running on a treadmill. they are not getting anyplace because the more they spend, the more inflation takes away, the more they earn, the more inflation takes away. and a lot of people are talking about their retirement accounts. what s wall street doing with all of this? yeah. well, right now wall street seems fairly at ease with what the fed is doing. we saw that again yesterday and they are comfortable that the fed is moving at a pace of rate hikes at .75 of a point. they will do another half a point or three-quarters of a point at the next meeting. it hasn t really rocked the stock market yet because it s been pretty well telegraphed. it s still tough for anybody who has retirement accounts, look at them this year down 15% on the s&p and similar on others so, you know, there s a wealth effect there and steve summed up the economic picture pretty perfectly. we are not in recession yet. the first q
we re right now in a contraction. the first quarter contracted 1.6% and this morning you ve got the atlanta federal reserve expecting a contraction in the second quarter of 1.9%. goldman sachs is expecting growth but taken the growth level down. in a nutshell, the economy is in a contraction. we re not growing. however, the jobs market so far has not been impacted too negatively from the sticker shock of inflation. it has impacted the corporate earnings sector and impacted the stock market. there is a wealth effect there that could play into all of this. but we ll see if this is the last strong report that we see before evidence of a recession, bill. mixed story in my view. bill: are we dipping or dropping or going the other way? thank you so much. great analysis. have a great weekend. thanks. new york city store owner is
to purchasing, expecting that to come down because of mortgage rates and all of the other factors in the economy of the issue is that we are not expecting the rental market to do the same, because the bottom line is it is about inventory. the people that have not been able to get into homes that can t buy homes and still can t buy homes, they are renting and there is only so much inventory on the market. so if you have a lease coming up soon, prepared to shop around and don t be surprised if your landlord comes with a new shocking number. neil. neil: the landlord holds all the cards, medicine, thank you very much. i wonder what jerry baker thinks of this, the wall street at a door at large, cracker jack rider as well. and today wall street journal talking about the cost of wishful thinking on inflation that is going away. and he spreads the blame and the wealth effect on making it more costly from the federal reserve to the administration and the hosts of others. good to see you.