Fed Chairman Jerome Powell is telling the American people to buckle up because hard times are coming. He warned that hefty interest rate hikes were coming and that they would cause “some pain to households and businesses.” In other news, Stephen Roach, who served as chair of Morgan Stanley Asia, is warning that the U.S. would need a “miracle” to avoid a recession.

CNN Business/Alicia Wallace
Fed Chair Jerome Powell says ‘some pain’ is on the horizon. Here’s what that means

In a blunt speech last Friday, Federal Reserve Chairman Jerome Powell warned that the central bank’s battle against inflation won’t come without some casualties.

The Fed is firmly resolved to bring down inflation and to “keep at it until the job is done,” Powell said. But that plan — which involves a series of hefty interest rate hikes — will bring “some pain to households and businesses,” he acknowledged.

What exactly that “pain” might entail — as well as its intensity and duration — could vary considerably in an economic environment pockmarked by high inflation and other elements of instability.

Democratic Sen. Elizabeth Warren of Massachusetts criticized the Fed’s plan during an interview with CNN’s Dana Bash this weekend, saying: “What [Powell] calls ‘some pain,’ means putting people out of work, shutting down small businesses because the cost of money goes up, because the interest rates go up.”

You can keep reading, here.

MoneyWise/Brian J. O’Connor
Here’s how much the typical baby boomer has saved up for retirement — how do you stack up right now?

The 71.6 million men and women of the postwar baby-boom generation started hitting retirement age eight years ago. But it’ll be another dozen years before the whole generation has reached its full retirement age.

So just how is retirement shaping up for the generation that went from Woodstock and Watergate to iPhones and Instagram?

A new survey from the Transamerica Center for Retirement Studies estimates that the median retirement savings of boomers totals $202,000. That might sound like a respectable amount of cash, but that produces just $8,080 a year, or $673 a month.

In many cases, that money gets nibbled away by income tax, too. With that in mind, here are three proven strategies baby boomers might want to seriously consider to bolster their retirement nest eggs.

Continue reading, here.

CNBC/Stephanie Landsman
Worst is yet to come: Economist Stephen Roach says U.S. needs ‘miracle’ to avoid recession

Negative economic growth in the year’s first half may be a foreshock to a much deeper downturn that could last into 2024.

Stephen Roach, who served as chair of Morgan Stanley Asia, warns the U.S. needs a “miracle” to avoid a recession.

“We’ll definitely have a recession as the lagged impacts of this major monetary tightening start to kick in,” Roach told CNBC’s “Fast Money” on Monday. “They haven’t kicked in at all right now.”

Roach, a Yale University senior fellow and former Federal Reserve economist, suggests Fed Chair Jerome Powell has no choice but to take a Paul Volcker approach to tightening. In the early 1980′s, Volcker aggressively hiked interest rates to tame runaway inflation.

You can keep reading, here.

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