The economy took an unexpected turn downwards in december as the job numbers and macro indicators show. Is this the end of the Trump bounce and the beginning of reality?
Housing starts are way below expectations. Rising interest rates are squashing everything. The FED should keep tightening, but sadly the economy is too weak to support any more… for the time being.
We want a fed rate of 3-5 % and its going to take a lot of baby steps up to get there. But whith enough information of a nosedive being imminent its time for the fed to pause. But they wont. They are on a scheduled path of raising and tightening. Which is the correct thing to do. Sadly its going to trash our economy in the process. Which is quite sad … the fact that we don’t have ridiculous growth with these low rates shows how bled out the economy is today.
We need general tariff protections. And much more money going to entrepreneurs and much more easily than vulture capital. Sadly the gov is all about handing out millions for fat cricket research or the emotions of green armpit haired women, but little for real company formation and the SBIR program is a joke with very government specific projects which are useless in new company formation and 150k awards, its not enough to support entrepreneurs. We need a new well funded initiative. Take the dreamer billions and put it into our citizens. Sadly wont happen.
Trump had some confidence, but at the end of the day its going to take jobs and dollars to get the nation moving again.