Latest / The Jon Sanchez Show / Today’s Fed Interest Rate Decision
Transcript
- Jon G. Sanchez, CEO: Good Wednesday afternoon to you. Welcome to the Jon Sanchez Show on News Talk It's a pleasure to be with you. But a pleasure to have to deliver the news that I have to deliver today. My goodness, what a tough day we had today. I'm so glad we're together to able to share with you what everything has transpired and it did it did and so on and so forth. Folks, I'm going to be real honest with you. We've got an inflationary problem that no one's really starting to recognize. It is really an issue that we're starting to see more and more of. before you know it, this nasty I word that the Fed does not like, no one likes, is gonna be right in front of our face. And why do I say that? Because we had a rough day today. And the rough day today started early in the morning when basically saw ourselves faced with a hotter than expected PPI report, the measure of inflation on the wholesale side of things. Now, normally the street doesn't pay a lot of attention to that type of report, right? They pay more attention to CPI number. But when you start getting a PPI number, again, the measure of inflation on the wholesale side, everyone gets a little concerned. Now, why is that? Pretty It starts with the businesses that will determine what the prices are that you and I are gonna pay for our goods. And if businesses paying a higher price, on the wholesale side to create their product, then guess what? You think they're gonna absorb that cost? Absolutely not. What they're gonna do is they're gonna pass that cost onto us. So the PPI report that we received at 5.30 this morning that the market didn't really get all that concerned with until Chairman Powell had a few comments to mention about inflation. That report, it was an eye-opening experience. It was much, much hotter than expected. And again, when we start to see this, we go, okay, maybe inflation is not a major issue at this point, but it's lurking around the corner. And that folks is going to me into what we're gonna be discussing today, which is the Fed's interest rate decision. ⁓ again, I'll tell you right up front, nobody any inclination whatsoever that the Fed was gonna raise rates, cut rates, do anything. It was all about what they see going on now. And more importantly, over the next few months, maybe the next year, which they don't have any clue better than anybody else. And it was Chairman Powell's comments that sparked a major market sell-off today. So it started with PPI. Then the chairman just made the situation worse. now we're faced with an inflationary concern. That, of course, with the oil situation. And mention right up front, I said this on my stock updates this morning. Remember this PPI report that we received this morning that was so much hotter than expected, did not accompany any data from the month of March. This was February's data. So if these oil prices hold steady for the rest of this month, come April when we get the March's PPI data and CPI data, that's really when a problem could begin to exist. If these oil prices remain at elevated levels, which of course anybody's whether that's gonna happen or not. We sure as hope it doesn't. So today what I'm going to be really focusing on is again, I want to go into this PPI report. I want to explain what it is, right? So you have a good understanding this whole equation for wholesale inflation. Then we're to spend the rest of the show talking about the Fed interest rate decision today. Again, they left rates unchanged. There was not prediction on Wall Street indicating they were going to do anything else. But one thing that changed is you're going to find out is They're now talking about interest rate increases. see, let me refresh your memory. We go back to the beginning of this year and I sat right here behind this microphone and I said, I am confident one to two interest rate cuts this year. Well, of course, nobody predicted that we're going to be at war. And now the chairman is talking. He made some comments that I'll share with you that potentially we could be seeing an interest rate increase, increase the end of this year. Now, let's put a little water on this fire, however. Chairman Powell's not gonna be there. It's gonna be Kevin Warsh if he gets confirmed by the Senate. Kevin Warsh is Trump's man. Do you have any inclination whatsoever that a handpicked Federal Reserve Chairman, i.e. Kevin Warsh, would even think, think about raising interest rates under the Trump administration? I think you and I both know the answer to that one is absolutely not. So that was Chairman Powell's comments. Now, I do want to mention while I'm speaking to that, press, actually, ⁓ me back up. The press did not ask this. The chairman volunteered a question and an answer. He says, I know you guys are going to be asking me, so let me just tell you. If Warsh is not confirmed by the Senate, he's been chosen by the president. But if he's not confirmed by the Senate, which He's having some problems. There's a few Democratic senators that trying to do everything they can not to confirm him. But if he is not confirmed, Jerome Powell today said, I will stay on as the interim Federal Reserve chairman. And he said, you know, it's happened in the past. And he goes, matter of fact, when I came in and became chairman of the Federal Reserve, you know, his was also he was not confirmed ⁓ so he kind of you know came as a as an interim ⁓ so didn't realize good remember that was a question I had a few weeks ago I said ⁓ what if worse is not confirmed who's gonna are we gonna have a vacant seat well the answer is no chairman Powell would stay on now another that he was basically ⁓ and and himself was he says I know lot of you want to know this will I remain on the board of governors, meaning a voting member of the federal open market committee. And he says, I have not made a decision on that. I will wait till we get a little bit closer and then make a decision. Now, that's going to be an interesting one. If he decides to stick around, which legally he can, right? You basically bump down from chairman of the Federal Reserve down to a voting member or board of governors and or you're a voting member when you're on the board. So that was another real interesting take. So we had a lot of things thrown at us today. The good news that I can take out of today was oil prices were relatively subdued. Matter of fact, we lost 63 cents on oil, 95.42 a barrel. That's not bad, but it's still elevated. We were up a couple bucks early this morning on oil, but things kind of calmed down a bit once we had to worry about the Federal Reserve and hotter than expected inflationary report and so on and so forth. So again, a tough day today. I'm just going to tell you what these numbers were or are, how we finished up. And then we'll begin to start dissecting exactly what happened today. So we finished down 768 points on the Dow. That was a 1.63 % loss to close at 46,225. NASDAQ a 327 point decline, 1.46%. Closed at 22,152. S &P down 91 points, 1.36%, closing at 6,624. And the Russell 2000, the small caps, lower by 41 points, 1.64%, to close at 2,478. So it was right across the board. The VIX index, the volatility index, now back at 25, a little above 25. When you're up in this range, that tells you investors are very, very nervous about getting real mathematical with what the actual VIX number means. But that just shows you that investors are very nervous at this particular point, which they have a good reason to be, right? We're all nervous about this. We have this nasty war going on that we don't seem to be getting anywhere at this point. Even though Trump says we can end this thing matter of days. We've got oil prices that are fluctuating all over the place. And now we have hot inflation that we need to deal with. So I go to break, let me squeeze in what this PPI report told us this morning. Because this is, again, where everything kind of started to get a little bit sideways with us after this report came out. Again, it came out at 530 this morning. once the opening bell rang, we had some modest losses. ⁓ PPI, month month, up 0.7%. Now, notice the emphasis of my voice. may be going, ⁓ I know what that means. Well, let me just put it in perspective. From January to February, wholesale inflation, month over month, was only up 0.3%. So that was more than double in one month. And again, I'm gonna keep emphasizing, this has nothing to do with the recent uptick in oil prices. So expectation was 3 tenths of a percent, came in at up 7 tenths of a percent. of course fueled the inflation concerns, since again, oil is not really included in this one. Now we go to the, go to the core number, right? So that's where we strip out food and energy. Core PPI up 1 1⁄2 of a percent month over month. Again, much larger than anticipation. If we look at the year over year number, go back to the headline, the first one I mentioned that was up 7 10ths month over month. Year over year ⁓ 3.4%. Core stripping out food and energy even higher up 3.4%. 9%. So you see about my comments here a moment ago, folks, this is a hot, hot wholesale level. And how these numbers will not transition into a hotter than expected CPI report and higher oil prices when they're factored in, this could be a major, major headwind for the markets, unfortunately. So there's the data. Now when we come back, I wanna share with you some more information about it. I wanna break down, I haven't done this in a while, I wanna share with you really what PPI is all about. So all I tell you is it's the wholesale level of inflation. Let me go a little bit deeper with you and then as the show progresses, we'll get into of course the Federal Reserve Interest Rate Decision, read to you what the statement was and then some of the major comments that came out of Chair Powell at the news conference. Let's turn it over to Kristen Snow. She's in the Right Now Traffic Center. Kristen. Welcome back to the Jon Sanchez Show and Newstalk 780k. I'll reach out to you all on all of you, Fed interest rate day. Oh boy, was it an interest rate day today. Well, as I said earlier, it was a bit of tough go today. We had hotter than expected PPI report. We had Federal Reserve, of course, chairman that said, you know, little concerned about inflation. Kind of had it all thrown at us. Again, the only bright spot was oil prices were relatively calm, as I indicated earlier. Once again, we lost 768 on the Dow, 1.63%. NASDAQ down 327, 1.5 % loss, or 1.46%. I shouldn't round up. And the S &P down at 91.2%, 1.36%. All right, before I get to what the Fed actually had to say, I want to back up to the other issue, because again, it was very much mentioned in the chairman's comments at his press conference today, which again, always follows at 1130. In regards to concern about inflation, right? And so we got a taste of this. And if you just joined us, as I said at the beginning of the show, got an inflation problem and no one wants to admit it. Trump administration doesn't want to admit it. Many ⁓ institutional investors don't want to admit it, but it's coming. It is coming. And it's indicative again by this PPI report. So again, I want to just kind of explain to you this report. So main to about PPI. is, again, it's on the wholesale side of things. And as I said at the beginning of the show, this is my concern. Because once again, this number came in with a gain of 0.7 % month over month. So from January to February, up 0.7%. Wall Street was only looking for 0.3%, so more than double. That was the month over month. Year over year, we're up 3.4%. But if we strip out food and energy, was even a hotter number, up 1.5 % month over month, but up 3.9 % year over year. Now remember, As I'll share with you when I go through the Fed's ⁓ minutes of, or not the minutes, but the release of the interest rate decision today, which again, they left interest rates unchanged. Remember, the Fed has a mandate, right? They want full employment and they want inflation at 2%. Now, this is not the report that they look at to say, how far are we away from hitting 2%. That's the PCE number, which, you again, historically, or not historically, but recently, I should say is a better word. ⁓ has been nowhere near 2%. We're over the 3 % mark. And now this number is going to, think, have a negative meaning it's going to increase that PCE number when we get that in a few weeks. But you have start with the wholesale side. So what is this crazy report that affected the market today? So ⁓ the Bureau Labor same ⁓ organization, government organization that the non-farm payroll numbers that I cover each and every month, what they do is They, in the second week of the month, they do a big survey. This survey is based upon approximately 100,000 monthly price quotes reported voluntarily online by more than 25,000 producer establishments. So it's a big survey, right? It covers, again, 100,000 different products and the inputs that go into those, and again, 25,000 businesses. So pretty representative. And this is why I said, really have, unless something dramatically changes, you can't really have a hot CPI or PPI number and then expect a cool CPI, the measure of inflation on the retail side, where you and I pay for things. So this is like the precursor. It's like the foundation to the house. So again, report ⁓ was worse than what everybody had anticipated. ⁓ And I'll share with you later in the program, Chairman Powell did make some concerns about it and comments about it. But bottom line is inflation is coming. especially, once again, ⁓ these oil prices remain where they are, let's say really anything above, I'm going to say, to $70 barrel mark, anything above that, that's going to have a big impact. It's going to have a big impact on the CPI side of things. Because remember, CPI, roughly 4 to 6 % of its calculation are energy prices. Again, I'm speculating, I'm going out. We still have a couple of weeks before this month is over. God willing, these oil prices come down, but we're not really seeing much of that at all at this particular time. We saw Brent today skyrocket. We saw West Texas skyrocket. And once again, just overall, we were down 63 cents is where we finished at 95.42, but we were up over 100. We keep pushing up. Let's go back to some technical charting that we do in the stock market. We have what's called support and resistance. If you look at a chart, support is where the price level should hold. It's kind of the dip in the chart. And then you have resistance, which is the upper end of the chart. We keep hitting this resistance on oil at about $100 a barrel. Now, I don't know what's going on. I don't understand. I'm not a commodity trader. But I'll tell you what. typically will happen, I've given you guys this analogy many times over the years, when it comes to looking a stock and it keeps hitting that resistance level, it keeps hitting it. And the analogy I always like to give is a Super Bowl, right? If you go into a room, you got a concrete floor and a concrete wall, and you throw that Super Bowl down, ⁓ and hits the wall, what, maybe two or three times, depending upon how good of a Super Bowl it is and how hard you threw it. ⁓ And eventually, you know, it starts to peter out. Well, eventually, if you do it enough times, and I know I'm being kind of facetious here, let's say it's not a concrete ceiling. Let's say it's a paper ceiling. Eventually, you hit it enough times, it's going to break through. And that's what I'm fearful of on the oil side of things. If we break above 100 and we hold it, see, that's why the stock market's been able to hold up so nicely these last, really last couple of weeks since the war broke out, because we're not holding for any sustainable period of time, oil above 100. If we start closing above 100 on a regular basis, that's when we're going to start to have problems in the stock market. see it. I monitor, trade it all day long. And this is exactly where it is. You hit that 100 mark, watch the futures tonight. So I give you an idea. So again, we closed at 95.42. Let me give you a fresh quote on the futures side of things. Let's see, right now Dow futures are down 111, NASDAQs are down about 52. All right, now again, I don't pay any attention to it because they just opened at three o'clock. We got a long ways to go before tomorrow. But watch oil. If you see oil hit above $100 overnight, you'll see those futures begin to accelerate on the downside. That's the catalyst. That's the key to watching this market right now and trying to figure out what you want to do in your portfolio. Again, I want to emphasize one more time. If we close above $100 one, one day we're OK, a couple of days we're going to get concerned. But if it's on a two to three day plus time range, it's going be problems. Because now you've got two negatives that are going against this. You have this hotter than expected PPI report that the traders are not going to forget about. They know that these oil prices do break the 100 and they hold here by the time the month of March is open or over, that's gonna have an impact on CPI and PPI for the month of March. So they're looking at that. And then as you're gonna find out later in the program, the Fed's really in no hurry to cut interest rates. It's matter of fact, we learned today from the chairman, again, as I'll share with you, they're thinking about maybe raising interest rates. But again, we got Kevin Wors coming in, so don't put a tremendous amount of credence into that. I just wanna share that with you with what the chairman had to say today. Okay, we got a lot to cover. I'm gonna come back and I'm gonna share with you what the Fed had to say at the interest rate meeting today, why they had left interest rates unchanged. Then we'll get into some Chair Powell comments. Sternordord Jack Saban, he's got news, traffic and weather. Hello Jack. Back to the Jon Sanchez showing his talk 780 k oh, you get a tough day on the street today finished down 768 on the Dow 1.63 % as that class 327 S &P down 91. All right, it all started as I said with the PPI report, right? The measure of inflation on the wholesale side of 7 10ths of a percent from January to February. Wall Street's expectation was three 10ths of a percent year over year up 3.4 % strip out food and energy up a half a percent month over month gaining 3.9 % year over year. And I did look up I was close the PCE the fed's favorite measure of inflation is for January is at 3.1 % And again, they want that down to 2 % So we've got an inflationary problem that's brewing and that's again not even accounting for potential higher oil prices if these prices hold once again It was quiet today in the oil front 63 cent lost a 95 42 a barrel tough day on gold though hundred and twelve dollar ninety cent loss four thousand eight forty four sixty Was our was our level there? And want to throw a little cautionary note for those of you that trade gold, which you never should, gets a long-term investment. But if you're wondering why your gold prices are coming down, it's inflation. ⁓ No wants to hold gold, which is a non-dividend-producing investment. It's like holding a bond when inflation is hot. ⁓ You want to do that. And as find out here in a second, bond prices tank today. So you're gonna, you own gold and you're owning it long term, don't worry about it. But if you're looking at it short term, be prepared. You could see some more downside risk here. Again, this was a pretty severe loss on it today. And we're seeing the same with all the precious metals, silver, et cetera. Now let's go to the bond market. Bonds do not like high inflation. So what we saw happen, we saw people bail out of the bonds. The institutions went sideways on them, went negative. And therefore we had a six basis point increase on the 10 year treasury to a yield close of 4.26%. So you see how important how important inflation is to the stock market, to the precious metals, to bond prices, to everything. And it has an impact in your life. It has an impact on your portfolio values, and it also has an impact, of course, what's going on in life, right? We know things don't get any cheaper. And was during the break, I was thinking to myself, if you're one these 25,000 businesses that are surveyed by the BLS, right, to, you Find out what these 100,000 products, what your pricing is, did it go up, did it go down, that type of thing, for them to put the components of the PPI report together. do prices ever go down? Think about that. Think of all the things you consume in your life. What things really go down? Very little, Electronics are really one of most important things that, not one of most important, but one of the things in our lives that do go down. But if we at everything else, you see gas prices fluctuate, but groceries, clothing, things that you need to live each and every day, electricity, car insurance, homeowners insurance, nothing's going down. It's getting expensive. It's continuing to be. And that's why we keep talking about how so of you are stretched. It's not your fault. Your wages are not catching up with the higher cost of living anymore. So let's find out Sherman had to say today. First of all, I'm gonna start off by reading to you the very short interest rate decision. Now in mind, as I'll share with you in a few moments, ⁓ today what's called the SCP. This is where, I like to joke that you get all Fed members that have a little piece of paper and they get to write where they think rates are gonna go and where ⁓ they cuts to and they put it in a big black cap. Now I'm joking when I say that, but this is where they get to make their own individual projections. Again, where they think rates are gonna go, cuts, that type of thing. ⁓ street does pay attention to it, but it's each individual person's opinion. So cover that in just a moment. But first, let's go to the Fed ⁓ press release today. Available indicators that economic activity has been expanding at a solid pace. Job gains have low and the unemployment rate has been a little changed in recent months. Inflation remains somewhat elevated. The committee seeks, here's Cut and paste, the committee seeks to achieve maximum employment and inflation at the rate of 2 % over the longer run. Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East and the U.S. economy are uncertain. The committee is attentive to the risk of both sides of its dual mandate. In support of its goals, the committee decided to maintain the target range of the Fed funds between 3.5 to 3.75. In other words, they left things unchanged. And considering the extent and timing of additional adjustments to the target range for the Fed funds rate, The committee will carefully assess incoming data, the evolving outlook, and the balance of risk. And we hear that a million times. The committee is strongly committed to supporting maximum employment returning inflation to its 2 % objective. Not doing too good of a job with that. In the appropriate stance of monetary policy, ⁓ the will continue to monitor the implications of incoming information for the economic outlook. The committee be prepared to adjust the stance of monetary policy as appropriate. ⁓ if risks emerge that could impede the attainment of the committee's goals. committee's assessment will take into account a wide range of information, including readings on labor market conditions, inflationary pressures and inflation expectations, and of course, financial and ⁓ developments. Now had one dissent today. Everybody voted favor of leaving interest rates unchanged, but dear friend I. Moran, who preferred lower ⁓ He was the one dissenter. Lots of cut rates by quarter percent every single He's one of the new Trump guys that joined the FOMC too long ago last year, but every meeting he votes for a quarter percent cut. And when ⁓ committee, when got our cut a few weeks ago or a few months ago, ⁓ I think he a half a percent. So ⁓ he's never happy. ⁓ again, could be taste of if Trump gets more of his people appointed the Fed, this could be something that see more and more of. OK, so nothing earth shattering. Now let's get into some of the comments that Federal Reserve Chairman Jerome Powell had to say the press conference. At conference, he said there's really, really he say much of anything. I want to you my takeaway first. Let me do this before I get into the details. I felt like he's a man that. is bruised and battered because of what Trump has done to him, his criticism. did, as I said at the first segment of the show, he say, you know, again, he'll stay on as interim chairman if Kevin Warsh is not approved by the time his term is up in mid-May. He also said that made some comments, and trying to remember exactly, precisely what he But basically he said, it, I'm not going anywhere. until you know, essentially this witch hunt by ⁓ against him and the and everything else against the Fed for coming in budget on the renovations of the Federal Reserve headquarters, et cetera. He basically said, ⁓ not going anywhere that is resolved. Now, I didn't see ⁓ of new services make of that, but I've been thinking about that since the chairman's comments. And it goes back to what I was saying earlier from the standpoint that he said, look, I haven't made my decision yet whether I'm going to remain on the board after my term as chairman is up, if I'm going to remain on the board. And my takeaway was, OK, what if this thing is not resolved? I mean, it's not looking good for the Trump administration in regards to Chairman Powell, right? We've had some court rulings that basically said this thing is a witch hunt, not going anywhere, that type of thing. But nothing formalized yet, to my knowledge. So let's say this thing is not resolved, right, by the time his term is up in mid-May. Would Jerome Powell stick around and stay on board, stay a voting member, just because again, he to not leave until that ⁓ issue resolved? I think the answer is yes. Because I think the man, back to my takeaway watching him today, I think the man has battered and bruised I think the man feels very unappreciated. I think the man is tired of criticism. Right again, folks, this is, always used to say that the chairman or chairwoman of the Federal Reserve Bank of the United States of America is the most powerful human being in the world. That was before President Trump came in. Trump is by far now is the most powerful man in the entire world. Powell's number two. So I think he's got a lot to prove. These guys have egos, that's not coated. They've got egos and they don't wanna go out and have their tenure basically tarnished. And that's the I think if he left today, he would feel, he made numerous during ⁓ his ⁓ press that essentially he and the Fed, he'll never say just himself, it's always the team, very frustrated that they get inflation down, right? Down to that 2%. And I think that's another thing that he's, he said, you we're puzzled. were, you know, we're not real sure why this has happened, but you know, we've had a number of events that have happened. had COVID, we had this, we had that. And inflation just, you know, we can't get it down to this 2 % mark. And boy did the market dip. Matter of fact, I want to share with you, know, the Dow is my favorite, uh, industry. When, when the chairman started his press conference, right. I mean, he is so good about starting on time, right at 1130, the Dow Jones Industrial Average was down 450 points. By the time he finished, and I didn't, don't recall exactly what time it was, probably around 12.15 or so, maybe 12.30, the Dow Industrial Average was down 653 points. So we lost points based upon the comments of the chairman at this press conference. All right, I'll more comments from the chairman today when we come back. Let's wrap it up with Kristen Snow. Right now, Traffic Center, hello, Kristen. to the Jon Sanchez Show on News Talk which all right, digesting what Chairman Powell had to say at the press conference today. Once the Fed did leave interest rates unchanged as anticipated, but some the big takeaways once again is they're in no hurry to start cutting rates by any stretch of imagination. Matter of fact, some are starting to say maybe an interest rate increase gonna be the next move, not a decrease. But I want to caution everybody before you freak out on this, because again, everyone was so looking forward to this quarter percent cut, which as I've said over and over again, doesn't really mean anything. The bond traders, they can ⁓ rates up or down. That's what's going to impact your life, right? Your mortgages and auto and credit cards and so on and so forth. Just remember, the Fed, when they talk about raising or lowering interest rates, that's the rates that banks charge one another, right? It's supposed to have a lingering effect onto the other liabilities I just mentioned. Doesn't always happen that way. Matter of fact is, Ask poor Dwight and we'll get his opinion on this tomorrow. What typically happens when we've seen the Fed interest rate increase? Mortgage rates have gone the other direction. Mortgage rates have gone up. So take that with a grain of salt. going back to a couple of things that the chairman had to say that I thought were real interesting. Once again, the vote was 11 to 1 to hold the rate steady. So nothing big there. But I want to go into the dot plot. This is where, again, the individual members, 12 of the 19 members, Voted today or or I shouldn't say voted they penciled in right in their little piece of paper as I call it They penciled in at least one cut this year Now that was the same number they did in December. So that's happened. These harder than expected reports Don't seem to have much impact on them. Now. Why is that? Remember folks the Fed is slow and steady, right? That's the way they operate. They don't get excited on one or bad report. They want to see a trend developing So that does not surprise me. So we got 12 of the 19 individual opinions that looking at one cut this year. And again, that was the same as December. However, several did pencil in fewer reductions. Matter of fact, one participant, you don't know who it is, they penciled in a rate hike for next year. Now Powell waved out those projections when he said ⁓ his usual to take them with a grain of salt was true and even more than usual. So in other words, he's saying don't pay a lot of attention to it. So why they do this, I don't know, but it's fun to look at it. A other quotes that came out that I thought would be of interest to you. He ⁓ in press conference that the question of quote, looking through any supply shocks will be one to not lightly, injecting a significant dose of caution ⁓ to the standard advice. what does he mean through? He made some comments, matter of quite a few comments. how tariffs having an inflationary negative right? And I said to myself, the smart aleck side of myself, said, weren't you the one that told us when Trump announced tariffs last April on liberation day, didn't you tell us in all your meetings going forward that tariff inflation is transitory, it doesn't last? Well, here we are now, we've had five years. Five years of inflation being above the Fed's 2 % mandate. So you have to take it with a grain of salt with the Federal Reserve. In many cases, I think they're the smartest men and women in the world sometimes. And other times I realize they're just men and women. They put on their pants the same way you and I do each and every day. And they're just, as they always say, they're data dependent. They're just kind of taking things with a grain of salt, looking at this, looking at that, and then slowly making a decision. But never in history, with rising oil prices, I'll give you this little tidbit, never in history has the Fed ever cut interest rates when energy prices, or more importantly, when inflation is rising, right? The Fed wants to cut interest rates when inflation is coming down. We're going the opposite direction. I love this comment by a fellow by the name of William English. I've never heard of him. He's a former senior Fed economist. He said, what a terrible situation they find themselves in, meaning the Fed. Having kind of weathered this inflationary shock this year, to have another one this year seems a little bit cruel. you know, we know, that again, I, the reason I wanted to share that comment with you, that was my take when you can kind of sense that in Chairman Powell's comments, it's like, this was last thing I needed in the last few months of tenure ⁓ to be dealing oil shock and higher inflation, et cetera. So, you know, he wants to out on top, but again, oil markets, et cetera, gonna be the ones that really finally determine that. So interesting situation we find ourselves in. Tomorrow's a brand new day. No telling what the street will bring us, but we'll be ready for it I'll share it with you tomorrow on the show. God bless, have a great afternoon on the Jon Sanchez Show. You have been listening, take care.