With the release of reports on some key economic indicators there are “cracks in a very strong economy” according to Guy Williams, President of Gulf Coast Bank & Trust. Williams spoke on the Newell Normand Show on Monday.
Williams said while there are signs of inflation moderating, it’s for all the wrong reasons because the economy is getting weaker.
“Particularly in areas like first-time homebuyers are really becoming increasingly priced out of the market. Now home sales haven’t dropped off the cliff, because where you used to have 12 buyers for a house you know have seven, but in the less desirable areas it’s hard to sell a house now, so you’re beginning to see concessions,” said Williams.
We’ve heard so much about the Federal Reserve’s role in trying to stabilize the economy through the raising of interest rates. After it did so less than two weeks ago, the talk and indications of a slowdown began. As much as people would like to blame the Fed for the slow down, Williams said you can’t blame someone for doing their job.
"The Fed has done what it needed to do in terms of responding to COVID, which is provide low rates, and Congress, both sides of the aisle provided an awful lot of stimulus money. And once the party got really rolling the Fed’s job is to quite pouring alcohol in the in the punch bowl.
"The Fed was late to that and the party got a little further than it should have. Now the Fed is doing their job and taking money out of the economy and probably not quickly enough. It’s not reasonable to complain that they’re doing what they’re supposed to do. It’s their mandate. They have a dual mandate, lower unemployment, and lower inflation,” Williams told Newell Normand.
Of course, another key area of the economy that’s seen outrageous inflations is in energy. We see that play out daily at gas stations. Who’s to blame for that, and when could we start to see some stabilization? Listen to the link above for more.
