WEBVTT 1 00:00:00.760 --> 00:00:03.439 This is the sound going to restore law and order 2 00:00:03.560 --> 00:00:08.720 of America. Returning to factory settings. Fifty five krc P 3 00:00:09.080 --> 00:00:15.240 Talkstation eight o five, the fifty five KRCD talk station. 4 00:00:15.439 --> 00:00:18.160 It is that time of week. We talked money, money 5 00:00:18.160 --> 00:00:19.199 Monday with Brian. 6 00:00:19.000 --> 00:00:20.320 James from Allworth Financial. 7 00:00:20.760 --> 00:00:22.640 Got some good topic to talk about and of course 8 00:00:22.719 --> 00:00:26.000 number one on the list there tariffs, tariffs, tariffs. Brian James, 9 00:00:26.000 --> 00:00:27.760 welcome back to the morning show. It's always good having 10 00:00:27.760 --> 00:00:29.280 you on the program. 11 00:00:29.359 --> 00:00:31.519 Yeah, and it's always good to be here with you. 12 00:00:31.600 --> 00:00:33.799 And it's always good to have a batch of headlines 13 00:00:33.799 --> 00:00:35.600 from the weekend to discust, don't we. 14 00:00:35.759 --> 00:00:39.920 Isn't that the truth? And were talking about gross domestic 15 00:00:40.000 --> 00:00:43.399 product and four point twenty five to four point five 16 00:00:43.439 --> 00:00:46.000 percent in terms of the FED and its rates, and 17 00:00:46.759 --> 00:00:49.439 sadly the third topic really is so concerning to me. 18 00:00:49.560 --> 00:00:52.240 Young families can't able, it can't afford to buy a home. 19 00:00:52.320 --> 00:00:54.479 But let's dive onto the terroriffs. And if you look 20 00:00:54.479 --> 00:00:57.159 at the White House dot gov fact sheet in case 21 00:00:57.159 --> 00:01:00.079 people aren't really aware of exactly why Donald Trump with 22 00:01:00.159 --> 00:01:05.560 tariffs on Canada and Mexico and China. He cited fentanyl 23 00:01:05.920 --> 00:01:09.400 and the borders, the illegal immigration. Those are the two 24 00:01:09.439 --> 00:01:12.760 main things that he is he's promoting these tariffs for. He's, 25 00:01:12.799 --> 00:01:14.640 you know, shut down the borders or help us with 26 00:01:14.640 --> 00:01:20.000 border security and quit shipping fentanyl into our country, declaring 27 00:01:20.000 --> 00:01:22.680 a national emergency based on that under the International Emergency 28 00:01:22.719 --> 00:01:25.480 Economic Powers Act. I guess I have to ask out loud, 29 00:01:25.560 --> 00:01:29.120 not knowing really anything about the International Emergency Economic Powers Act, 30 00:01:29.480 --> 00:01:32.840 is this something that could be subject to legal charge 31 00:01:32.920 --> 00:01:36.359 or illegal action or Congress could step in and take 32 00:01:36.400 --> 00:01:36.879 them away. 33 00:01:37.000 --> 00:01:41.159 I really, I really don't know that. I'll stay out loud. Brian, Yeah, I. 34 00:01:41.079 --> 00:01:42.640 Know, And I think that there's a lot of us 35 00:01:42.680 --> 00:01:45.280 who aren't clear exactly on what the what the legal 36 00:01:45.319 --> 00:01:49.760 implifications are of these decisions, because sometimes we hear that 37 00:01:50.120 --> 00:01:52.719 decision was made and executive order was issued, and somebody 38 00:01:52.719 --> 00:01:54.760 else will say, wait a minute, that's completely illegal. In 39 00:01:54.799 --> 00:01:59.200 some cases they've been declared unconstitutional. But nobody has stepped 40 00:01:59.280 --> 00:02:02.959 up and actually on any of those perceptions of these 41 00:02:02.959 --> 00:02:05.680 executive orders. So this is a president we've seen before. 42 00:02:05.760 --> 00:02:08.360 Obviously we know he's willing to push the envelope. He 43 00:02:08.439 --> 00:02:11.439 certainly is this time around, with kind of nothing to lose, 44 00:02:11.479 --> 00:02:14.400 as a basically a lame duck under current rules because 45 00:02:14.400 --> 00:02:16.439 he can't run for election again. So yeah, that's what 46 00:02:16.520 --> 00:02:18.560 we've been seeing. And everything has come fast and furious 47 00:02:18.560 --> 00:02:19.879 sins inauguration. 48 00:02:19.680 --> 00:02:21.439 Well, and it's going to be across the board. I 49 00:02:22.039 --> 00:02:24.319 don't know how anybody can say that this will not 50 00:02:24.680 --> 00:02:28.360 have an in fact on prices. I mean, you're raising 51 00:02:28.479 --> 00:02:31.800 you're putting tariffs on these goods. I think necessarily the 52 00:02:31.879 --> 00:02:34.199 price is going to be passed along to the consumer. 53 00:02:34.800 --> 00:02:37.240 And it's a huge swath of goods. I got a 54 00:02:37.319 --> 00:02:39.000 kick out of some of the ones that the Wall 55 00:02:39.039 --> 00:02:44.159 Street Journal identified, like cherry tomatoes, Tanka trucks. They mentioned 56 00:02:44.159 --> 00:02:47.159 this specifically because they're all made in China, but they 57 00:02:47.199 --> 00:02:49.319 also pointed out that more than eighty percent of toys 58 00:02:49.319 --> 00:02:52.560 sold in the United States are made in China. Maple syrup, 59 00:02:53.039 --> 00:02:55.080 you know, tap your own maple trees in the backyard 60 00:02:55.080 --> 00:02:59.599 like we did, I guess, tequila, avocados, smartphones from China 61 00:02:59.639 --> 00:03:02.039 subject to a ten percent increase in tiffin in the 62 00:03:02.120 --> 00:03:04.840 last one. I really got a kick out of sledgehammers 63 00:03:06.159 --> 00:03:08.479 made in China. Sledge hammers are already subject to a 64 00:03:08.520 --> 00:03:11.400 twenty five percent import tax. Although we do have some 65 00:03:11.919 --> 00:03:15.680 sledgehammer manufacturers here in the United States, but it goes 66 00:03:15.719 --> 00:03:17.680 way beyond those ones that were identified. 67 00:03:18.439 --> 00:03:20.159 It does. Now hold on one second while I check 68 00:03:20.199 --> 00:03:21.080 sledge hammer futures. 69 00:03:21.120 --> 00:03:22.280 Yeah, yeah, let's do that. 70 00:03:23.120 --> 00:03:25.639 But I think know that that's that is a fascinating list, 71 00:03:25.840 --> 00:03:27.800 and you'll you and I could go find another article 72 00:03:27.840 --> 00:03:30.280 right now that'll have twenty seven other products that you 73 00:03:30.360 --> 00:03:33.560 didn't just mention. So I think that's that. This this 74 00:03:33.759 --> 00:03:35.840 is what what you know, what we've been calling it. 75 00:03:36.439 --> 00:03:38.159 You know, over the weekend you're starting to hear the 76 00:03:38.159 --> 00:03:40.719 words trade war. Other countries are now calling it a 77 00:03:40.759 --> 00:03:44.000 trade war. So this, this is very much so the 78 00:03:44.039 --> 00:03:47.520 president delivering on the promises that he made. Now, one 79 00:03:47.520 --> 00:03:51.039 thing he didn't seem to have mentioned until now is that, oh, 80 00:03:51.080 --> 00:03:53.000 by the way, this is going to cost us. As 81 00:03:53.039 --> 00:03:54.800 you were hinting, prices are going to go up. There's 82 00:03:54.800 --> 00:03:57.080 no way to avoid that. Over the weekend he said, yeah, 83 00:03:57.120 --> 00:03:59.560 price must be paid, but the end result will be 84 00:03:59.599 --> 00:04:01.840 all worse that but but there could be some pain 85 00:04:02.280 --> 00:04:04.400 in the near future here. So he didn't really mention 86 00:04:04.479 --> 00:04:06.879 that during the campaign. That's obviously not something you expect 87 00:04:06.919 --> 00:04:09.000 to gain any votes by really shining a light on 88 00:04:09.080 --> 00:04:13.439 But there is no way to slap tariffs on companies 89 00:04:13.439 --> 00:04:16.000 who are looking to make a profit and force those 90 00:04:16.000 --> 00:04:19.879 companies to only take it out of their profits. They're 91 00:04:19.920 --> 00:04:22.480 going to raise prices. This is the United States of 92 00:04:22.480 --> 00:04:25.199 profit margin companies who are having to deal with these costs. 93 00:04:25.240 --> 00:04:26.839 And it might might it might be a company that 94 00:04:26.920 --> 00:04:29.920 you perceive is an American company, but they may be 95 00:04:30.040 --> 00:04:33.879 bringing parts in from to build. Cars are a great example. 96 00:04:33.920 --> 00:04:37.480 For one, part inside of a car may literally go 97 00:04:37.600 --> 00:04:41.720 back across the border of Canada and or Mexico several 98 00:04:41.720 --> 00:04:44.000 times before it lands in its final car. So it 99 00:04:44.040 --> 00:04:46.040 may be an American brand. You may be buying it 100 00:04:46.079 --> 00:04:48.360 from what you feel is in an American dealership, but the 101 00:04:48.399 --> 00:04:51.240 parts in it could be coming from multiple countries that 102 00:04:51.360 --> 00:04:53.959 will all add up and wind up on that windowsticker. 103 00:04:54.519 --> 00:04:59.600 Well, and to some effect, the the threat of terrorists 104 00:04:59.680 --> 00:05:02.199 has kind of worked, I know in terms of repatriating 105 00:05:02.240 --> 00:05:05.000 some of the illegal immigrants. Some certain countries have said, Okay, 106 00:05:05.079 --> 00:05:08.560 we'll take them back under threat of Donald Trump retaliating 107 00:05:08.560 --> 00:05:11.800 against him. And is that really the impact he's looking for? 108 00:05:12.240 --> 00:05:14.319 And again going back to the fact sheet. This is 109 00:05:14.439 --> 00:05:20.000 purely based upon FENTONYL and illegal immigration. Now, we, I think, 110 00:05:20.040 --> 00:05:23.560 to a large degree, can control the border because obviously 111 00:05:23.560 --> 00:05:25.959 they're cracking down on it already. We did have a 112 00:05:26.160 --> 00:05:30.639 more secure border in prior administrations, but more resources went 113 00:05:30.720 --> 00:05:34.959 down there for walls and security and warm bodies in 114 00:05:35.000 --> 00:05:37.560 the form of ice agents. I think you could curtail 115 00:05:37.839 --> 00:05:40.839 one of the two identified problems to a large extent. 116 00:05:40.879 --> 00:05:44.600 Now Canada represents a more sizable challenge, considering that is 117 00:05:44.720 --> 00:05:47.360 pretty much a wide open border, and it is a 118 00:05:47.439 --> 00:05:51.680 big one. But I guess I'm just wondering what resources 119 00:05:51.720 --> 00:05:55.240 the Mexican government could even bring to bear since their 120 00:05:55.279 --> 00:05:58.959 country is largely controlled by And feel free to disagree, 121 00:05:59.000 --> 00:06:00.839 but it's been my conclusion over the years that the 122 00:06:00.839 --> 00:06:04.839 CAR tells they have a substantial amount of power in Mexico, 123 00:06:04.920 --> 00:06:06.759 and here's Trump trying to take away one of their 124 00:06:06.759 --> 00:06:10.399 primary sources of income, which is drugs and varying illegal 125 00:06:10.439 --> 00:06:13.959 immigrants to the southern border, right, And I. 126 00:06:13.879 --> 00:06:16.240 Think you raise a great point in terms of there's 127 00:06:16.399 --> 00:06:19.000 there is a lot of enforcements, or at least much 128 00:06:19.040 --> 00:06:21.800 more on the south side than there is on north side. 129 00:06:21.920 --> 00:06:24.720 So I think when when we when we uh lay 130 00:06:24.759 --> 00:06:27.560 a levy energy tarists, for example, against Canada, and not 131 00:06:27.560 --> 00:06:29.199 a lot of people know this. I think it's becoming 132 00:06:29.439 --> 00:06:31.800 a more popular news item where people are going, huh, 133 00:06:31.839 --> 00:06:34.959 didn't know that Canada is the largest of among the 134 00:06:35.319 --> 00:06:37.879 countries the United States brings in oil from Canada is 135 00:06:37.879 --> 00:06:41.439 the largest one. So that that so obviously we were 136 00:06:41.480 --> 00:06:43.079 trying to poke them in the eye. Of course, that's 137 00:06:43.079 --> 00:06:45.279 maybe maybe there's better ways to handle up. That's effectively 138 00:06:45.279 --> 00:06:49.040 what we're doing to get their attention on the fentanyl issue. 139 00:06:49.079 --> 00:06:51.240 But I think also what's underlying this to me, this 140 00:06:51.319 --> 00:06:54.519 is the first shot across the bow of we want 141 00:06:54.560 --> 00:06:57.680 to be producing much more. We want to import less 142 00:06:57.839 --> 00:07:01.480 and produce more domestically. So first off, let's just make 143 00:07:01.519 --> 00:07:05.120 domestic oil more expensive. However we can do it, and 144 00:07:05.199 --> 00:07:07.560 we'll call it fentanyl, and we'll call it illegal immigration 145 00:07:07.680 --> 00:07:10.839 or whatever. But let's just slap oil tariffs on Canada. 146 00:07:10.959 --> 00:07:13.399 That will force us to say, hey, imported oil is 147 00:07:13.439 --> 00:07:15.879 more expensive. It's going to drive the price up. That 148 00:07:16.000 --> 00:07:18.240 will get the attention of the domestic drillers and the 149 00:07:18.319 --> 00:07:21.079 drill baby drill thing. Right now, domestic oil companies don't 150 00:07:21.079 --> 00:07:23.079 really want to drill so much. They're not super excited 151 00:07:23.079 --> 00:07:25.920 about it because oil prices are not that high. If 152 00:07:25.920 --> 00:07:28.240 we drive it up, this is Trump's thinking. I believe 153 00:07:28.360 --> 00:07:30.759 if we drive that price up, they'll be more attracted 154 00:07:30.759 --> 00:07:34.519 to go drill. And take into account the executive orders 155 00:07:34.519 --> 00:07:36.360 he has put out there over the past few weeks 156 00:07:36.480 --> 00:07:38.959 to make drilling easier. Right now, the profit isn't there 157 00:07:38.959 --> 00:07:41.399 for them, but based on oil futures from last night 158 00:07:41.439 --> 00:07:43.920 that bounced about two percent to the upside, it looks 159 00:07:43.959 --> 00:07:45.399 like it's going to go more attractive for him. 160 00:07:45.519 --> 00:07:48.360 Well, and doesn't this sort of fly in the face 161 00:07:48.399 --> 00:07:53.120 of rebuilding or are going back to build the Keystone 162 00:07:53.240 --> 00:07:56.040 XOL pipeline because that brings oil from Canada into the 163 00:07:56.120 --> 00:07:56.800 United States? 164 00:07:56.879 --> 00:07:59.000 Right correct? 165 00:07:59.040 --> 00:08:00.319 And now I haven't heard him mention it's not in 166 00:08:00.399 --> 00:08:03.000 a very very long I know. I know, so I 167 00:08:03.079 --> 00:08:05.160 think I don't think that's a major priority for him. 168 00:08:05.199 --> 00:08:07.399 It was a hot point because I think that was 169 00:08:07.399 --> 00:08:09.279 a poke in the eye to the to the liberal 170 00:08:09.399 --> 00:08:12.120 side that wanted that shut down because of it for 171 00:08:12.199 --> 00:08:14.959 environmental reasons and so forth, But that was never really 172 00:08:15.000 --> 00:08:18.279 his objective. I think his objective is for more domestic oil. 173 00:08:18.360 --> 00:08:20.399 So that's why we haven't heard the word keystone all 174 00:08:20.439 --> 00:08:22.959 through this. I haven't heard that since the since the election. 175 00:08:23.240 --> 00:08:26.439 Yeah, and in terms of and I understand, maybe the 176 00:08:27.079 --> 00:08:29.959 motivating force behind increasing the price of Canadian oil in 177 00:08:29.959 --> 00:08:33.159 the United States is exactly what you said. But those 178 00:08:33.200 --> 00:08:36.519 projects don't come online very quickly. I mean, it takes 179 00:08:36.559 --> 00:08:40.440 a while to ramp up a drilling project, doesn't it exactly. 180 00:08:40.480 --> 00:08:42.759 And that's why that's the pain he's talking about. He 181 00:08:42.799 --> 00:08:44.919 can't talk about pain when he's trying to win an election. 182 00:08:45.240 --> 00:08:48.279 Candidate Trump doesn't have to talk about that. President Trump 183 00:08:48.320 --> 00:08:49.919 has to give us a heads up that hey, this 184 00:08:50.000 --> 00:08:52.519 might hurt for a little while, so that six months later, 185 00:08:52.559 --> 00:08:55.000 when a little while is still happening, because we haven't 186 00:08:55.039 --> 00:08:57.440 started much of this domestic production yet, he can say 187 00:08:57.440 --> 00:08:59.279 I told you about this way back in February. It 188 00:08:59.320 --> 00:09:01.440 was gonna hurt. We got to pay the price, good, bad, 189 00:09:01.480 --> 00:09:03.960 and different. That's the reality that we're current in, currently in. 190 00:09:04.200 --> 00:09:07.120 And going back to my question about you know, legal challenges, 191 00:09:07.200 --> 00:09:10.240 I mean, we currently have a trade agreements and or 192 00:09:10.279 --> 00:09:12.799 trade agreements in place with Canada and Mexico. Didn't Trump 193 00:09:12.840 --> 00:09:15.120 negotiate that when he was president the first time around. 194 00:09:15.879 --> 00:09:17.440 Sure, there's a lot of things he did when he 195 00:09:17.480 --> 00:09:19.879 was president the first time around that that don't seem 196 00:09:19.919 --> 00:09:22.039 to hold any bearing. Now look at all the people 197 00:09:22.080 --> 00:09:24.360 he appointed that now he's firing. A lot of the 198 00:09:24.399 --> 00:09:27.120 firings you're hearing are his own people from six eight 199 00:09:27.200 --> 00:09:30.080 years ago. So I don't know that history necessarily means 200 00:09:30.159 --> 00:09:32.399 much of anything. It's just the reality of you know, 201 00:09:32.440 --> 00:09:34.360 his his window he looks at is what do I 202 00:09:34.399 --> 00:09:34.960 see right now? 203 00:09:35.039 --> 00:09:36.440 What do I need to do about it? The history 204 00:09:36.519 --> 00:09:39.360 is irrelevant, it sure is. And going back to the 205 00:09:39.399 --> 00:09:43.480 whole idea about drugs. You know, drugs have been coming 206 00:09:43.519 --> 00:09:45.879 into this country, I mean since before I was born. 207 00:09:46.759 --> 00:09:49.000 It's the demand that is the problem. I mean, if 208 00:09:49.039 --> 00:09:51.360 we weren't a nation of a bunch of addicts and 209 00:09:51.960 --> 00:09:54.960 cravers of drugs, then this wouldn't even be an issue. 210 00:09:55.000 --> 00:09:58.480 I know that's a simple statement to make, but Lord almighty, 211 00:09:58.720 --> 00:10:02.120 it's just I don't get it. That just seems to 212 00:10:02.120 --> 00:10:04.080 be there should be another way to skin a cat, 213 00:10:04.120 --> 00:10:05.759 if you know what I mean, rather than going down 214 00:10:05.759 --> 00:10:07.960 this road. But here we find ourselves. 215 00:10:09.000 --> 00:10:11.840 Yeah, when I step back and look at the biggest 216 00:10:11.840 --> 00:10:13.840 of big pictures. You know, I always use the term 217 00:10:13.879 --> 00:10:16.279 the United States a profit margin, and we've seen that 218 00:10:16.360 --> 00:10:18.879 is our number one focus, and it always has been 219 00:10:18.879 --> 00:10:21.919 how much more money can we make? And the wider 220 00:10:21.960 --> 00:10:25.840 we spread that the profit margin range, the more people 221 00:10:25.840 --> 00:10:27.399 get hurt on the bottom end of it. If you're 222 00:10:27.399 --> 00:10:29.480 born in the top two thirds of wealth in this country, 223 00:10:29.480 --> 00:10:31.279 you're gonna be okay. But if you're in the bottom third, 224 00:10:31.879 --> 00:10:34.960 you're gonna struggle. And we tend to, unfortunately take advantage 225 00:10:35.000 --> 00:10:36.879 of that group of people. And I think that has 226 00:10:36.919 --> 00:10:39.000 a lot to do with the addiction issues that we've seen. 227 00:10:39.039 --> 00:10:40.200 I don't know how to fix it, and if you 228 00:10:40.200 --> 00:10:41.879 and I could push a button right now this morning, 229 00:10:41.879 --> 00:10:45.320 we do it. But right now, profit margin trump's everything. 230 00:10:45.799 --> 00:10:47.000 I get it all day long. 231 00:10:47.080 --> 00:10:50.600 Well, let's talk gross domestic product and fed interest rates 232 00:10:50.600 --> 00:10:53.279 and we'll finally in the third segment get to the 233 00:10:53.480 --> 00:10:58.039 sad reality of lack of affordable housing. American dream kind 234 00:10:58.039 --> 00:11:01.000 of taking a side step here, but first twenty two three. 235 00:11:01.159 --> 00:11:03.039 You show up at twenty two three on Route forty 236 00:11:03.039 --> 00:11:05.240 two between Mason eleven. If you have any interest in 237 00:11:05.279 --> 00:11:08.600 a suppressor, they're doing a demo day this Saturday between 238 00:11:08.639 --> 00:11:13.120 ten am and four pm. Shaw Armament on hand with 239 00:11:13.399 --> 00:11:16.879 what are described to some really amazing suppressors that are serviceable, 240 00:11:17.039 --> 00:11:20.919 modular and chamber or caliber rather changeable. So if you 241 00:11:20.919 --> 00:11:22.960 know suppressors, that is a big deal. And if you 242 00:11:23.039 --> 00:11:24.799 don't know them, want to find out what they're all 243 00:11:24.799 --> 00:11:27.600 about and try one out. Stop by twenty two three 244 00:11:27.639 --> 00:11:29.559 on Route forty two between Mason and eleven and learn 245 00:11:29.600 --> 00:11:33.559 straight from the representative. It's a great way to find 246 00:11:33.559 --> 00:11:35.240 out about them. Check out twenty two to three this 247 00:11:35.320 --> 00:11:39.159 Saturday beginning a ten again to four pm Rouph forty 248 00:11:39.159 --> 00:11:42.480 two between Mason and elevenon online. Get other information online 249 00:11:42.519 --> 00:11:44.559 at the website twenty two to the number followed by 250 00:11:44.600 --> 00:11:47.200 the word three spelled out twenty two three. 251 00:11:47.240 --> 00:11:51.440 Dot com fifty five KRC. For more information about contests 252 00:11:51.480 --> 00:11:52.679 on this station, go to. 253 00:11:53.480 --> 00:11:56.120 A twenty fifty five KRCD talk station doing that money 254 00:11:56.159 --> 00:12:00.399 Monday thing with all our financials Brian James, all Right, 255 00:12:01.159 --> 00:12:02.600 is the R word going to come up in our 256 00:12:02.600 --> 00:12:03.559 conversation today? 257 00:12:03.559 --> 00:12:04.240 Brian James. 258 00:12:04.240 --> 00:12:06.519 A Federal Reserve holding interest rate to four to a 259 00:12:06.639 --> 00:12:08.600 quarter to four and a half percent plus. We have 260 00:12:08.600 --> 00:12:11.759 a new gdpeak final quarter review figure. So what's this 261 00:12:11.960 --> 00:12:12.559 all mean. 262 00:12:13.600 --> 00:12:15.159 I'm not going to say the R word. I don't 263 00:12:15.159 --> 00:12:18.480 want to jinx anything, so fair enough, but we would 264 00:12:18.600 --> 00:12:20.320 not not looking so bad at the moment we do. 265 00:12:20.679 --> 00:12:22.960 We do seem to be slowing down. So so fourth 266 00:12:23.000 --> 00:12:25.480 quarter GDP came in at two point three percent. That's 267 00:12:25.519 --> 00:12:28.679 a deceleration from last quarter, which is three point one percent. 268 00:12:28.919 --> 00:12:31.039 These are all annualized numbers, so we do is we 269 00:12:31.039 --> 00:12:33.000 get the number for a three month period, we multiply 270 00:12:33.039 --> 00:12:35.559 it by four, and we declare that to be what 271 00:12:35.639 --> 00:12:37.960 the what we think the economy would do over a year. 272 00:12:38.240 --> 00:12:41.320 So we're falling a little bit short of the economists 273 00:12:41.360 --> 00:12:43.879 want two point wanted two point six percent, so we 274 00:12:43.919 --> 00:12:45.639 fell a little bit short of that. Things seem to 275 00:12:45.639 --> 00:12:47.799 be slowing. I do think some of that could be 276 00:12:47.879 --> 00:12:51.120 accounted for by the idea that, especially toward the end 277 00:12:51.120 --> 00:12:53.679 of the quarter, companies may have been backing off a 278 00:12:53.720 --> 00:12:56.600 bit on investments that they were going to make, waiting 279 00:12:56.720 --> 00:12:59.399 for this inauguration to occur and to see what's coming 280 00:12:59.440 --> 00:13:01.960 here and first quarter in darn it all, we sure 281 00:13:02.000 --> 00:13:04.320 are seeing it here in the short run. So Federal 282 00:13:04.320 --> 00:13:08.600 Reserve as for their position. They held the interest rates 283 00:13:08.600 --> 00:13:10.600 and we want to keep an interest rates in the 284 00:13:10.799 --> 00:13:12.639 target right now four and a quarter four and a 285 00:13:12.679 --> 00:13:14.960 half percent. This wasn't a big surprise. We kind of 286 00:13:14.960 --> 00:13:17.600 expected this pause really for the same reason Drume Powell 287 00:13:17.600 --> 00:13:20.159 has said he wants to see how the economy is 288 00:13:20.159 --> 00:13:22.919 going to respond to the different changes coming out of 289 00:13:22.919 --> 00:13:27.639 the Trump administration like tariffs. Yeah, such as the things 290 00:13:27.639 --> 00:13:28.399 we've been talking about. 291 00:13:28.440 --> 00:13:30.799 Almore, well, let's get that and let's just see see 292 00:13:30.840 --> 00:13:32.039 we can't tie those two together. 293 00:13:32.159 --> 00:13:34.759 If as you and I kind of expected, and I think. 294 00:13:34.679 --> 00:13:37.320 Logical thinking people will expect the same thing, prices is 295 00:13:37.360 --> 00:13:39.600 going to go up at least for quite a few 296 00:13:39.600 --> 00:13:42.759 goods and services. What will that be, by way, what 297 00:13:42.759 --> 00:13:46.000 would the Fed's response to that price increase be in 298 00:13:46.080 --> 00:13:47.080 terms of interest rate? 299 00:13:48.080 --> 00:13:49.919 Well, the Fed is going to wait to see inflation. 300 00:13:50.000 --> 00:13:53.120 Mean that that's their goal is to control inflation. Inflation 301 00:13:53.320 --> 00:13:55.519 isn't that bad right now? Certainly not where we were 302 00:13:55.559 --> 00:13:58.799 a few summers ago. At nine percent. It's slightly higher 303 00:13:59.440 --> 00:14:02.200 than what we've wanted it to be. Core core PC 304 00:14:02.480 --> 00:14:04.519 came in at two point eight percent, which was right 305 00:14:04.559 --> 00:14:07.639 around the expectations, but a lot higher than what that 306 00:14:07.679 --> 00:14:11.159 committee shoots for at two percent. Jobless claims were okay, 307 00:14:11.200 --> 00:14:13.120 and new home sales are a little better than anticipated, 308 00:14:13.200 --> 00:14:15.919 So we're not seeing the kind of things yet that 309 00:14:16.360 --> 00:14:19.799 the Fed would indicate or are going to be inflationary, 310 00:14:19.840 --> 00:14:22.279 and therefore we need to react at this point. Though 311 00:14:22.320 --> 00:14:25.639 the market bonds are trading as though we're going to 312 00:14:25.679 --> 00:14:28.200 see a cut in June. That is a very very 313 00:14:28.240 --> 00:14:30.639 short term here's what's happening right now type of an update. 314 00:14:30.720 --> 00:14:32.159 Let's keep an eye on out of the next few 315 00:14:32.159 --> 00:14:34.000 weeks and see if that holds true. 316 00:14:33.960 --> 00:14:35.840 And if it does, about it to be more like 317 00:14:35.840 --> 00:14:36.960 a quarter point, wouldn't it. 318 00:14:37.840 --> 00:14:40.679 Yeah, We're not in a situation where we've got raging 319 00:14:40.720 --> 00:14:44.480 inflation and raging deflation. Nothing's raging, So I would anticipate 320 00:14:44.559 --> 00:14:46.639 more tapping of the brakes or tapping of the gas 321 00:14:46.679 --> 00:14:48.679 pedal if we do anything at all in the short run, 322 00:14:48.919 --> 00:14:51.759 but much more likely very much wait and see approach. 323 00:14:51.960 --> 00:14:54.440 Jerome Powell is not even reacting to how he's being 324 00:14:54.440 --> 00:14:58.440 disparaged by the president who actually appointed him in twenty seventeen. 325 00:14:58.679 --> 00:15:00.639 So Donald Trump would like to see or rates sooner 326 00:15:00.720 --> 00:15:03.440 rather than later, but he does not appear to be 327 00:15:03.559 --> 00:15:05.600 ready to get rid of Jeroan Powell to the extent 328 00:15:05.600 --> 00:15:08.159 that he could at that this point. 329 00:15:08.080 --> 00:15:11.360 Isn't it kind of a weird faw and ignoring whether 330 00:15:11.360 --> 00:15:14.759 you're a foe or against Donald Trump's decision to tariff 331 00:15:15.679 --> 00:15:18.600 that we expect it's gonna increase the prices prices, Well, 332 00:15:18.720 --> 00:15:21.960 that's an inflationary thing done because tariffs have been put 333 00:15:21.960 --> 00:15:25.639 in place, and the Federal Reserves job is to manage 334 00:15:25.679 --> 00:15:30.279 inflations through its interest rates, so that's a completely separate function. 335 00:15:30.399 --> 00:15:34.600 It's like there's a strange connect slash disconnect that's going 336 00:15:34.639 --> 00:15:36.519 on here between one side and the other. 337 00:15:37.639 --> 00:15:39.320 Well, I think the good news for Trump is that 338 00:15:39.360 --> 00:15:42.240 people are sensitive to inflation. We just had that nine percent, 339 00:15:42.279 --> 00:15:44.320 as I mentioned, and people still talk about that as 340 00:15:44.320 --> 00:15:46.759 if it's still here. That's not the case anymore. 341 00:15:47.360 --> 00:15:49.080 I'm still at the grocery store. But that's good. 342 00:15:49.120 --> 00:15:51.639 I mean that has there's a lot of layers in 343 00:15:51.679 --> 00:15:52.840 the grocery store prices. 344 00:15:52.840 --> 00:15:56.679 I understand that absolutely absolutely. But what I think that 345 00:15:56.720 --> 00:15:59.600 gives him is some headroom to say, well, yeah, a 346 00:15:59.639 --> 00:16:01.679 price have gone up here. You know, this hasn't happened yet, 347 00:16:01.720 --> 00:16:03.720 but I could see it playing out this way. After 348 00:16:03.759 --> 00:16:06.879 we do see some inflation resulting directly from the tariffs 349 00:16:06.919 --> 00:16:09.120 in the coming months, he could easily say, Yep, this 350 00:16:09.240 --> 00:16:10.720 is the price we have to pay that I told 351 00:16:10.759 --> 00:16:12.840 you about back in February. But at least it's not 352 00:16:13.000 --> 00:16:16.039 nine percent like it was under the Biden administration. That's 353 00:16:16.039 --> 00:16:18.120 how that's going to be positioned. So I'm pretty sure 354 00:16:18.320 --> 00:16:20.200 Trump looks at this as though he's got some headroom 355 00:16:20.240 --> 00:16:20.679 to work with. 356 00:16:21.360 --> 00:16:23.960 Well, let's keep our popcorn out. We'll find out together. 357 00:16:24.000 --> 00:16:26.279 Brian James pause and bring us. I'm to talk about it. 358 00:16:26.480 --> 00:16:27.480 Yeah, I know, I know. 359 00:16:27.600 --> 00:16:29.159 And one more thing we'll be talking about, and I 360 00:16:29.279 --> 00:16:31.919 just I just just so badly for young people these days, 361 00:16:32.919 --> 00:16:37.039 home affordability, American dream kind of out of their reach 362 00:16:37.080 --> 00:16:40.919 at this point. Can anything change this current landscape? It's say, 363 00:16:40.919 --> 00:16:42.600 twenty five fifty five cars of the Detox station. One 364 00:16:42.600 --> 00:16:44.559 more with Brian James. We're gonna hear from todd Sledgeman 365 00:16:44.639 --> 00:16:47.159 since ANYVA some big changes coming to the VA locally. 366 00:16:47.840 --> 00:16:49.360 I'll be right back after these brief words. 367 00:16:49.440 --> 00:16:50.480 Fifty five KRC. 368 00:16:50.960 --> 00:16:54.960 The simply Jennine Weather forecast sunny day to day. Enjoy 369 00:16:54.960 --> 00:16:57.120 at sixty three for the high down to thirty eight 370 00:16:57.159 --> 00:16:59.200 every night with clouds. Be cloudy start of the day 371 00:16:59.200 --> 00:17:02.720 Tomorrow with sun afternoon Sunday afternoon forty five the high 372 00:17:02.799 --> 00:17:05.160 down to twenty nine Tomorrow night with clouds. 373 00:17:05.480 --> 00:17:06.599 Thought you on Wednesday as well. 374 00:17:06.680 --> 00:17:09.200 Showers late in the day thirty nine for the high 375 00:17:09.559 --> 00:17:12.799 forty seven degrees right now time for traffic from. 376 00:17:12.599 --> 00:17:15.680 The UCLT Traffic Center. Heart disease is the leading cause 377 00:17:15.720 --> 00:17:18.279 of death in the US. If you're at risk, trust 378 00:17:18.359 --> 00:17:22.440 the experts and you see Health for innovative and personalized hardcare. 379 00:17:22.680 --> 00:17:25.240 Expect more at U see health dot com. There's a 380 00:17:25.240 --> 00:17:28.240 broken down. He's found on the Reagan Highways ramp southbound 381 00:17:28.319 --> 00:17:31.319 seventy one left lane of the ramp blocked on. It's 382 00:17:31.359 --> 00:17:34.559 also an accident in Hamilton that's on North Beat and 383 00:17:34.680 --> 00:17:38.519 Black car versus LAMB Post Chuck ingram Mon fifty five 384 00:17:38.599 --> 00:17:39.079 kr C. 385 00:17:39.240 --> 00:17:40.319 The talk station. 386 00:17:42.319 --> 00:17:45.640 Ay twenty eight if afy about CAIRCD talk station. Happy Monday, 387 00:17:45.680 --> 00:17:48.319 Money Monday with Brian James. I'm all worth financial appreciation 388 00:17:49.079 --> 00:17:51.680 being loaned out every Monday for a few segs, but 389 00:17:51.759 --> 00:17:54.720 talk about money matters and get yourself a certified or 390 00:17:54.960 --> 00:17:57.480 financial planner fee based one, so they have a fiduciary 391 00:17:57.519 --> 00:17:59.680 obligation to you and you can plan for your retirement. 392 00:17:59.680 --> 00:18:02.880 And I guess in addition to lack of home affordability, 393 00:18:02.880 --> 00:18:05.039 probably young people can't afford to put money away for 394 00:18:05.119 --> 00:18:08.960 the retirement either. Brian, this is a sad reality settling 395 00:18:09.000 --> 00:18:13.359 in here, lack of affordable housing and the American dream elusive, 396 00:18:13.480 --> 00:18:15.759 a lot of kids still living at home with their parents, 397 00:18:15.759 --> 00:18:19.599 and I understand that it's just is there any end 398 00:18:19.640 --> 00:18:21.559 in sight on this and what would it take to 399 00:18:21.640 --> 00:18:23.079 change this landscape? 400 00:18:24.000 --> 00:18:27.000 Well, they say that you only dream during rem sleep, 401 00:18:27.039 --> 00:18:28.960