Episode 52: Consumer demand is about 68% to 70% of the economy

If the Fed were a doctor, they'd be writing a prescription to lower the patient's fever right now.Consumer demand is about 68% to 70% of the economy, and the gross domestic product (GDP). If things have a higher cost and there are higher interest rates because of the Fed's action, then the demand for those goods and services that are interest rate sensitive will come down.And when inflation comes down mortgage interest rates come down. So it's this whole domino effect. The MBA forecasted a recession for the first half of 2023.They forecast interest rates to be 5.2% by Q4, which would be below the current rate, let's call it 6.15%, the Freddie Mac rate.So in this fight against inflation, the $1.7 trillion bill that the government passed doesn't exactly help with that, although government spending has been coming down.#KPTalks