According to data from Redfin, the median U.S. asking rent fell 0.4% year over year to $1,937 in March. That’s the first U.S. Treasury Secretary Janet Yellen has said that banks are likely to become more cautious and may tighten lending further in the wake of recent bank failures, possibly negating the need for further Federal Reserve interest rate hikes. In a recent interview, Yellen said that policy actions to stem the systemic threat caused by last month's failures of Silicon Valley Bank and Signature Bank had caused deposit outflows to stabilize, "and things have been calm."

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 the launch of Apple's 'Apple Card' savings account, with a 4.15% annual percentage yield. It requires no minimum deposit or balance, Apple said, and users can set up an account from the Wallet app on their iPhones.

Chris and Saied look at a report from investment research firm Morgan Stanley Capital International (MSCI), indicating that investors have grown voracious for apartment-building acquisitions in 2021 and 2022, having purchased $355.5 billion and $299.2 billion worth of apartment buildings, unprecedented sums that far surpassed the previous $194 billion record of multifamily sales in 2019.

They also offer some thoughts on news that the National Association of Home Builders / Wells Fargo Housing Market Index climbed to 45 in April, a 1-point gain, the highest since September. The index stood at 77 in April 2022.

Join Chris and Saied for this fascinating and informative conversation.

Enjoy!

What You’ll Learn in this Show:

• Why the Fed believes that unemployment is an inflationary trend.
• Why Chris believes inflation may be moderating.
• The degree of liability on the line for banking executives in the wake of the current crisis.
• Why difficulty getting loans and a lack of inventory has created a stalemate in the housing market.
• And so much more...

Resources:

"Yellen says US banks may tighten lending and negate need for more rate hikes" (Reuters)

"Fed should let the economy equilibrate, says former Fed nominee Judy Shelton" (CNBC)

"Warren Buffett Doesn't Hold Back When Asked About Failed Bank Execs" (TheStreet)

"Credit-card balances have hit historic highs. Here’s why that’s a worrying sign." (Market Watch)

"NO ATMs, no fees, and a 103-year old vault: Inside America's Smallest Bank" (Businessweek via Instagram)

"Apple launches its savings account with 4.15% interest rate" (CNBC)

"Rental Market Tracker: U.S. Rents Post First Annual Decline in Three Years" (Redfin)

"Landlords pumped billions into apartment buildings during the pandemic. That bet could now go horribly wrong." (Yahoo! Finance)

"Apple launches its savings account with 4.15% interest rate" (CNBC)

"Charlie Javice, the founder accused of fraud by JPMorgan, is arrested as DOJ files criminal charges" (Fortune)

"Bosses Pay Workers to Move Closer to Offices" (The Wall Street Journal)

"Homebuilder sentiment rises in April, as builders grab near-record share of the market" (CNBC)

"$134.1M! Wells Fargo CEO's retirement payout even bigger than thought" (USA Today)