In this short clip, Patrick Bet-David, Peter Navarro, Tom Ellsworth and Adam Sosnick talk about the FED increasing the interest rates.
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Tom what is going on with the economy I Know yesterday Powell said he increased The rates by a quarter of a basis point What what do you know about what's going On right now well we have an economist In the house so maybe we talk about the Economy and talk about the FED yesterday Well as we like to say in this program Um Jerome Powell did what he said he was Going to do he head upstairs and saw the Cheerleader and pounded the economy for Another quarter point however in his Comments the comments that Jerome Powell Made everyone was expecting him to have A very everybody reads the statements of The fed and we were looking for Moderated statement and after this I Anticipate maybe a flat summer there and He starts talking about Manufacturing in Mid-year instead he said you know I got To watch this economy because You know like training a dog Um there may be more firming necessary And when he said the word more firming Necessary in his comments everybody Wall Street got nervous you saw the whole Banking sector yesterday it wasn't just First Republic contagion it was Concerned that he used more firming may Be necessary which means in June they Think rates may go up so what's going on Right now the most likely scenario and I'm gonna I'm gonna go out and and say This so this is what I think pbd
Everything I've looked at I don't think We're going to see a rate increase in June I don't think we're going to see it In uh July because it's every six weeks Folks that the FED gets together with Their Board of Governors and they all Meet and I don't think there's going to Be a rate increase then we get all the Way down deep into Um that September but what I do think is We are and 88 of the analysts on Wall Street believe we're going to have a Mild recession that is evident in the November time frame that will push the Fed's hand and I believe in December You'll get your quarter point drop Because they'll want to put liquidity Into the economy because combination of Unemployment and a defined recession and Unemployment usually goes with recession Because people are not employed not Buying stuff which um pulls back GDP uh I think that's what's going on I think We're about to have a flat summer but we Did not get the enthusiasm about tamed Inflation that we thought we were going To get from Jay Powell any put the next Quarter point on there and it's not Going to help the housing market it's Not going to help mortgages and it's not Going to help business liquidity there's A big credit crunch right now and and Commercial Real Estate is in deep Trouble what do you say about that what
Are your thoughts hey Rob Rob do me a Favor see if you pull up like Bloomberg And see what right now what the s p is Doing whether it's up or down and Because s p is down Um Yeah yeah yeah so so yesterday it it Right after so my joke is that the the Bay the way to be able to afford a house In Palm Beach over the last I don't know Ever since Powell got appointed was to Uh short the stock market whenever he Got on the podium and there's been only One time when Jim Rome Powell has got on The podium where the stock stocks went Up because even if he's got like good News right he he can't he can't he's Like selling Sushi like raw fish right So the guy Um you know it just doesn't make it but But but what you've just laid out is is Kind of I think that's like um hope is Not a strategy it's the Mike Tyson thing That that you've got a plan uh Until you take the first punch in the Face and we got we got punches coming at Us see here's the way here's the one Thing I can I can tell tell your viewers Here it's like When you're in a stagflation world like We are which is simultaneous recession And inflation that's not normal you Usually have one or the other and when You have that kind of macroeconomic
Condition Um Keynesian policy tools do not work So if the FED tries to restain re Inflation by raising interest rates like It's doing it's going to trigger a worse Recession if it relents like you're Saying down the road By cutting rates or or stopping it's Going to exacerbate the inflation and so The FED is a one-trick pony you can't Use expansionary contractionary fiscal Policy to control stagflation the answer Here and this will be for the campaign In 2024 is the only solution is Structural structural changes in the Economy and right now what we need to do In the very short run is for Kevin McCarthy and the Republicans to hold the Line and get a deal where you cut back Some of those extravagant expenditures By the Biden regime because part of the Inflation is what we call demand pull Inflation too much money chasing too too Many Goods that would be that would be a A good step Um and the other kind of inflation you Have is costs push right it's the worst Kind of inflation and that's the food And energy type inflation and that's Where you need the structural solution So pre you watch president Trump he is Going to run on the restoration of Strategic full-structum energy dominance So that we can go back to where we were
Which was the incredible position of Being the number one petroleum producer In the world and a net exporter Determining the price of oil in World Markets rather than what we are now Where Biden has ceded that not just to Saudi Arabia but the Russia wrote a Substance about this kind of stuff I do It's like like right now Putin needs a Hundred dollars a barrel of oil to fund His War Machine Saudis need 85 dollars a Barrel to fund their social welfare uh Bribery machine what they do the Saudi Deal is they pay off the people there From throwing them out Um at knife Point by giving them a bunch Of government services right and so We're going to have oil which is going To be 85 to 100 that's going to drive up Food prices uh for the next two years Um instead of the 60 Barrel oil we Averaged under Trump so that that'll Give you a flavor but you know if if uh God forbid I were Fed chair I'd be Telling The the White House and the Congress is Hey I can't solve this problem alone for You you need to take the appropriate Steps you I'm raising race to control Inflation and Congress and Joe you're You're passing massive spending to bills Which we don't need which you're pushing Inflation out of control yes sir I Happen to agree with you on one thing
There is American Energy There's just messing with it Patrol Energy energy Independence yeah um and In this room yes all of us in this room Um are all about drill baby drill yes And because what you can do in Anwar What you can do in Permian Basin and we All know you were speaking about the uh Economic viability cost per barrel yeah We all know what happens at sixty Dollars a barrel below sixty dollars a Barrel we can't do anything in North Dakota with the Shale because we have Like a we have like a 55 extraction cost Although we're getting better that's Right it's moving targets it's come down But but yeah I tell you your point by The way Us in Canada with the Alberta Sands yeah that's why the um Saudis six Years ago artificially created it down To 45. and they wanted to keep it below The extraction capability of the Alberta Shell and the uh and Trump got all over Them for that correct so number one Energy Independence you're correct so in Other words for people who are paying Attention here Drilling is good sensible Drilling is good sensible drilling makes You independent of other people because You can take the oil that we have here First and second of all over stimulus When you're talking about demand pull That's what people understand when you
Give 1.6 trillion dollars to the American people they don't put it in Their bank account and and buy you know Regular consumer staples and get through Covid they go out and buy a ton of crap Yes and it creates its own inflation not With not only with the demand pull but Also the value of the currency value Because you just what you did to M1 and M2 because you throw all this money into The into the barrel so if you like this Clip and you want to watch another one Click right here and if you want to Watch the entire podcast click right Here [Music]
