>>60631948
Going to take your question seriously.
Prices across the board increase, including everyday needs like groceries, utilities, etc., meaning the average person now has less to spend on other more frivolous things. They don’t buy that new television they’ve been wanting, they skip the yearly family vacation to disneyworld, they don’t go out to eat on their once a week date night.
The larger impact we see right now is on housing, which Powell has been desperately trying to kill and it’s finally showing some results, but it was “stubborn” and remains so. People are not buying houses now, but people also are not lowering prices that much. The market is at a standstill. Powell did not predict for this, and has in the meantime severely damaged the economy by reducing spending across every other industry, which is going to long term trickle down to less jobs, more debt default, less wage increases, and even higher prices. So now the only way to really fix that is cut rates so people feel comfortable spending again as that will flood money into the economy via job creation and stability as well as wage increases. Yet it will have the unfortunate side effect of spiking asset prices again, including stocks, crypto, and, yes… housing.
We are watching the real time deletion of the middle class in the US. Those who own assets will be rich, forever. Those who don’t will have a MUCH harder time even planning for retirement let along “making it”.
