A measure the Federal Reserve watches closely to gauge inflation rose more than expected in January, indicating the central bank has more work to do to bring down prices. According to a report by the Commerce Department. The personal consumption expenditures price index excluding food and energy increased 0.6% for the month, and was up 4.7% from a year ago. Wall Street had been expecting respective readings of 0.5% and 4.4%. The core PCE gains were 0.4% and 4.6% in December.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.

They discuss a survey from the Philadelphia Fed that indicates 39% of crypto owners said last October that they would likely buy more cryptocurrency as a way to gain wealth.

Chris and Saied look at a research white paper that examines the history of central bank efforts to create disinflation, which states that the Federal Reserve is unlikely to be able to bring down inflation without having to raise interest rates considerably higher, causing a recession.

They also offer some thoughts on ‍a report from Goldman Sachs, which says that, out of the country's 25 largest metropolitan areas, four cities stand out for having particularly dim housing forecasts: Austin, Seattle, Phoenix and San Francisco.

Join Chris and Saied for this fascinating and informative conversation.

Enjoy!

What You’ll Learn in this Show:

• Why the Fed believes that wages and wage inflation will put upward pressure on prices.
• What could happen to the sub-markets of San Francisco and Silicon Valley.
• Why Open Door closed out 2022 with two straight quarters of losses and where it goes from there.
• The duties and role of a Chief Financial Officer.
• And so much more...

Resources:

"Roger Ferguson: The Fed has more work to do as inflation still presents danger" (article from CNBC)

"Key Fed inflation measure rose 0.6% in January, more than expected" (article from CNBC)

"Despite high inflation, Americans are spending like crazy — and it's kind of puzzling" (article from CNBC)

"Fed can’t tame inflation without ‘significantly’ more hikes that will cause a recession, paper says" (article from CNBC)

"Are we headed for a recession? More economists think a 2023 downturn may come later than they thought" (article from USA Today)

"Subprime auto lender folds as more Americans fall behind on car payments" (article from Fortune)

"Home prices will sink in these cities that were once red hot as supply starts to overwhelm demand" (article from Markets Insider)

"Opendoor loses $400 million as home sales tank" (The Real Deal via Instagram)

"Home remodeling is slowing down, but ‘historic boom' is coming" (article from Yahoo! Finance)

"The Rental Housing Market Hits An Historic High Point (And That’s Saying A Lot)" (article from Forbes)

"The investors who still think crypto can make them rich" (Wall Street Journal via Instagram)

"Binance's asset shuffling eerily similar to maneuvers by FTX" (Forbes via Instagram)

"Corporate Stock Buybacks Help Keep Market Afloat" (article from The Wall Street Journal)