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Would have thought it i am uh out here uh beating cnbc and bloomberg to news stories oh my gosh okay how about this yeah i just checked both those publications and see if they were even up on this and they’re not even up on what what’s going on here essentially okay but they will be in a few hours and this is going to be a huge huge news okay and people are
Going to be talking about this tomorrow believe me on that okay so i could read through all this for you guys uh but basically i’m just going to tell you what’s going to happen the fed is now going to have a closed door meeting on valentine’s day okay it’s a massacre and basically what’s going to happen now is this just got added they’re going to review and
Determine by the board of governors on the advanced and discount rates to be charged by the federal reserve’s banks so basically now they’re going to consider potentially changing rates in february and this is massive news because everybody had it as like march 16th you probably heard that date thrown out of there a lot right lately right march 16th hey mid-march
They’re going to decide they’re going to probably raise rates either a quarter percentage or a half a percentage right and that’s what everybody’s been expecting right and now the okay what is the i hope everybody watching this video can answer me this question okay please please tell me you can answer this question for me what is the number one thing the number
One thing the stock market hates more than anything else than anything else okay it’s being caught off guard that’s what the stock market hates more than anything else is being caught off guard with something that they were not prepared for at all and everybody had mentally put in their mind about the fed was going to potentially raise rates in march and we were
Going to get all that news and and but no son you throw it in february and it’s like oh boy okay what and um nonetheless futures already started moving down on the back of this news but here’s a thing i think only people that are might be selling in in the aftermarket or you know in futures market right now or probably on the west coast because all the big money
All the wall street money you know where they’re at right now they’re fast asleep right they’re fast asleep as this news has come out here okay now when they wake up and they find out that uh rates are potentially going to go up you know faster than expected before anybody really anticipated there’s a high probability there’s going to be more selling and more
Selling pressure on this market essentially because of this news that just has come out anywhere and it doesn’t mean i agree with it at all i you know me i’m like you know if you’re gonna make your buy and sell decisions based upon if the fed was gonna raise a month earlier or a month later that to me is pure silliness but i don’t i don’t control what goes on in
The stock market and the fact is there’s going to be a ton of funds out there likely selling stocks in the futures market and into the market tomorrow because of this being caught off guard situation the stock market hates it more than anything to be caught off guard in a situation like this and no one had anticipated this but now all sudden that’s got added to
This and people are like oh my gosh like wow you know mr powell j-pal is not messing around i think you know they saw cpi today and you know it seems like austin they’re getting really really aggressive really really fast and by the way that’s cpi man that was a bunch of bs i looked more into that tonight i spent some time going through the numbers what a bunch
Of baloney and so much of those numbers oh my gosh okay you know i was you know my dad he always told me you know the government fakes these numbers and stuff like that oh boy you look at those numbers rent oh gosh look at the rent number what a joke okay no one else has a rent number that low except the in the cpi government data every other company that tracks
Us on a high level that has rents that are up basically 14 plus year over year and then a cpi you know it’s a joke so anyways um is this is bad news now it’s already causing confusion out there on twitter and remember this hasn’t even gotten to mainstream yet but it’s already causing confusion and i can only imagine how much confusion this is going to cause when
It hits cnbc and bloomberg and all the big publications over the next several hours and into tomorrow okay but for instance this you know gentleman says there’s a fed board meeting on the 14th after fed’s bullard which by the way uh the fed’s bullard he basically came out and he said that he’s uh you know wants rates to be a percent uh by the summer essentially
So that freaked the market out a little bit today and that’s why we sold off so heavy after he also came out and sounded really really aggressive nelson you throw on top this meeting uh and everybody’s like okay why is that fed getting so aggressive so fast well they all they’ve been they’ve been lagging this whole time right so after the feds bullard raised the
Specter of inter-meeting uh hike last night have seen messages saying hike coming on the 14th this gentleman says not correct this is a regular board meeting not all voting members attend nothing to do with rates okay yeah that was like that until this part got added right here review and determination by the border governors of the advanced and discount rates to
Be charged by the federal reserve banks so it was all fine until this part got added okay and so now we’re in a situation where the fed could easily in that meeting make some big decisions that the market is not ready for or not not um you know going to pay attention to or something like that that it’s a closed-door meeting right so this is one of those big deals
And i think it’s causing confusion it will cause more confusion tomorrow and wait uh wait wait wait a minute what’s the fed doing here are they really going to announce they’re going to raise rates coming out of this meeting or are they setting up for raising rates what’s the situation here right and i’m seeing people put stuff like this if the fed you know does
An emergency rate hike just two weeks after their last meeting it would make them look completely incompetent and out of touch how do you keep rates on hold and then two weeks later have an emergency hike well there’s a lot of reasons you could see uh cpi uh come out today at 7.5 percent which was uh kind of a bs number as i said and pow and and folks could look
At that and say man you know this is the cpi numbers were worse than expected 7.2 was expected it came at 7.5 so inflation’s worse than they thought and those are lowball numbers they’re sandbagging low ball numbers at the end of the day and so i think powell and and the rest of fed are looking at this in this situation like man you know we we better get on it
Like we we can’t just sit around month after month after month and be like ah you know let’s just have our meeting in march and then we’ll figure out something i think there’s a there’s a you know pep in their step there’s like a sense of urgency that like hey we need to do something and the thing with the fed is they acted very fast when uh we went into roni rona
Right and on march 15th they announced they were going to use that all the tools necessary to make sure we got out of this situation of the pandemic and all sorts of things right and they were very fast to act and they saved them a market because the market ended up bottoming within a pretty much about a week of them putting out that statement right and so they
Acted very very fast but they’ve acted extremely slow when it comes to inflation and they see things getting worse and worse and i think they’re gonna you know are kind of figuring out oh boy we better get on this right no goldman sachs raises their forecast on fed tightening this year the bank goldman sachs now expects seven straight rate hikes that’s won every
Meeting in 2022 and the big question is what is goldman sachs expecting for rate hikes for each one are they expecting 0.25 are they expecting 0.5 percent because that’s a big difference right i mean that’s the difference between we could be at like let’s say two percent somewhere in the two percent range by the end of this year or maybe a three or four percent
Range uh you know maybe even approaching a five percent by the end of this year that’s that’s a way up their number but nonetheless you have wall street you know investment banks everybody pretty much putting these huge expectations on how many rate hikes there are going to be essentially now in 22 and everybody’s expecting there to be a lot of rate hikes and big
Ones nonetheless okay and so what this is going to end up causing is it’s going to likely end up causing um you know more volatility in the market and a bigger shaking of this market and like i said for me personally i’m not going to make any buy or sell decisions whether the fed raises in march or february or april you know that’s to me that doesn’t even register
Right but to the market this stuff matters and hedge funds and the funds in general they hate being caught off guard out of nowhere and if all of a sudden you’re talking about oh now we might do something in february you know they’re not going to like that and they’re going to shake up this market more so yeah anyways guys that’s about that the good news is if
You buy your stocks you’re going to get some more deals likely out there tomorrow and we’ll we’ll see where kind of things go from there always keep in the back your mind that in these uh rate hike cycles ultimately it is bullish for stocks almost every single time it is bullish for stocks in the short term you have to go through some crazy volatility and some
Major shaking uh of the markets to get to that other place but uh do keep in mind ultimately it is bullish right so anyways guys hope you enjoyed this as always uh beating the the big guys to the big news okay make sure to subscribe to this channel if you’re not already subscribed uh you you’re slacking man anyways guys much love as always and have a great day check out pin comment
Transcribed from video
THIS IS NOT GOOD. FED EMERGENCY MEETING COMING By Financial Education