The Federal Reserve’s own economists are warning of a potential US recession this year. They specifically called out “aggressively valued” stocks and real estate prices that may plummet soon. Paired with decreased household spending and increased borrowing costs, the Fed says elevated inflation may continue into 2024. Market strategist Kenny Polcari thinks the most recent Fed minutes revealed “little to nothing new” when it comes to the possibility of slowing interest rates. “I’ll repeat it again… The Fed is in no rush to cut rates,” he commented. In other news, Vanguard research shows that 401(k) accounts fell by 20% between the end of 2021 and the end of 2022.

Business Insider/Theron Mohamed
The Fed’s own economists are ringing the recession alarm – and warning stocks and real estate prices could tumble

The Federal Reserve’s own economists have just warned the US could suffer a recession this year.

They’ve raised the alarm about stocks and real-estate prices — which they say are aggressively valued and could plummet — and said painfully high inflation could persist into 2024.

Depressed levels of household spending and higher borrowing costs could cause the US economy to contract, the central bank’s staff cautioned, according to minutes from the Fed’s February meeting.

Continue reading, here.

Quoth the Raven via ZeroHedge
The Fed Is In No Rush To Cut Rates

Again I’ll say it. Hello…anyone home? Investors, traders and algos got little to no confirmation that the Fed has any interest in slowing, stopping or cutting rates anytime soon yesterday.

In fact, the FOMC minutes released yesterday at 2PM revealed little to nothing new about the latest “Fed Think” and instead corroborated the idea that rates are expected to continue to go up and remain up for longer. I’ll repeat it again for those in the back: what this means is:

The Fed Is In No Rush To Cut Rates

So, can we get off that horse now? Is there anyone out there that thinks the Fed is about to pause and then pivot in the late summer/early fall of 2023?

You can read the full article, here.

GoBankRatings via Yahoo Finance/Dawn Allcot
Retirement Planning: Average 401(k) Balances Fell 20% in 2022 — Will It Be a Trend?

At the start of the Great Recession in 2008, 401(k)s and IRAs lost roughly $2.7 trillion in value, down 31% from their peak in 2007.

Between the end of 2021 and the end of 2022, 401(k) accounts fell by 20%, according to new research from Vanguard. In the preview to the investment firm’s “How America Saves 2023” study, Vanguard indicated that the average 401(k) at the end of 2022 held $112,572 across its record-keeping business. The median account held $27,376, showing 23% in losses.

You can read the full article, here.

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