Prepare For Rate Cuts – Federal Reserve's $8.5 Trillion Debt Bomb Maturing in 2024

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#federalreserve #economy #fomc

Federal Reserve’s $8.5 Trillion Debt Bomb That’s Shaping Interest Rate Policy Behind the Scenes

*********** Video Breakdown ***********

As we approach the next FOMC meeting, the market’s pricing in a Fed pivot, sooner than later. With betting market’s putting the odd’s the Fed cuts rates in early 2024. However when you ask Jerome Powell, he says the opposite, that they aren’t even considering a change in policy anytime soon, not until they are sufficiently convinced inflation is firmly back down to 2%.

Well it turns out the Federal Reserve may have another reason why pivoting on the current monetary policy may not only be possible, but required. We often discuss the wall of corporate and commercial real estate loan maturities coming in 2024, well it turns out the U.S. Government also has a wave of loan maturities scheduled in 2024, $8.5 trillion worth!

We look at what this means for the possibility of interest rate policy, how it can impact the U.S. economy in 2024, what it could mean for the U.S. housing market, and what happens when these loans mature.

What do you think will happen? How much in renewed interest expense do you think the U.S. will face if the Fed keeps interest rates this high? Well make sure to watch to find out!

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*********** ABOUT RJ ***********

In 2012 I built Snapforce CRM, a software as a service application to compete with Salesforce, which was very expensive at the time. Since then, our user base has expanded to over 65,000 users in 12 countries. Our largest customer’s are mortgage companies and debt shops, who use our software for their sales process, and to check customer’s credit in real time.

With the type of clients we cater to, I decided to launch Snapforce Real Estate Insights last year, a peripheral software as a service product. It integrates directly with the big 3 real estate brokerages, to present their housing data in a digestible way, using our interactive maps and reports.

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I am NOT a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

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Comments

@MichaelSmittySmithScottsdaleAz says:

We need to stop spending on all the other countries, especially since part of the money goes to make the leaders rich. We need to make our people our number 1 priority. It's the taxpayers money not the government's.

@asshesays9407 says:

It is clear that "gutting the beast" will never happen. It is equally clear that the plan is to bankrupt the US Economy in order to implement a digital dollar and… not sure what that step looks like, but pretty sure it will mean the transfer of wealth from the many to the few.

@NoSkin-sv5zq says:

As the Federal Reserve sustains interest rates and hints at potential hikes, this serves as a critical indicator for financial planning. Coupled with a 'solid' economic outlook and inflationary pressures, the investment landscape is becoming increasingly complex. To navigate this, consider diversifying into cryptocurrencies, which are less affected by traditional market forces. My success in acquiring 23 bitcoins in seven weeks, thanks to Linda Wilburn trading insights, highlights the untapped potential of this alternative asset class.

@pelipapa says:

Good info, rapist glasses????

@markrichichi8484 says:

I heard a stat that over 60% of that 61 billion is for us companies who make all the equipments the boots the guns the the weapons that money is stimulated for this country
Should we have supported England after the Nazis invaded Europe and took over
Should we have done the Berlin airlift to save Germany..
Only 3% of the government's Department of Defense money is being spent on Ukraine. It is estimated that they have taken out nearly 50% of Russia's Army. Pretty good rate of return let's not forget we've been fighting the Russians since the 40s no Americans are dying their or Europeans and NATO is not involved they're fighting our war and people don't want to support them just have the bed print some more funny money and we're good to go LOL

@Dr.Squints says:

The USA is a tire fire right now but sure let's give ukraine and Isreal money we don't have

@PeterMOD-fq9oz says:

Wealth/Success is dependent on the action or steps you take to achieve it. Show me a man who doesn't have an investment and I will tell you how soon he'll go broke. Investment is building a safe haven for the future: with the right choices of investment that has minimum risk and with an Expert guidance, profit and interest should be guaranteed

@mikehuffman8208 says:

They're gonna melt it up and then deliberately crash it all, in order to usher in the new global digital/tokenized system and reset all the debt. Game over.

@elvispresley3234 says:

RJ, great video, but I strongly disagree with your remark starting at 8:50 re; "business that had no business being in business because they rely on cheap money etc." Without going into a long rebuttal, suffice it to say that relying on loans and lines of credit to run operations is not a disqualifier. It is a very normal and expected part of almost any business because it is a cash flow mechanism. The problem isn't the debt nor LOCs but rather the Feds and US government's gross mishandling of our tax money and other sources of government revenue that produced non-realistic and unsustainable near 0% interest which in turn fueled gross asset appreciation that was not in any way based on fundamental value of production nor in line with real wages. The bottom line, the idiot Feds and completely stupid politicians created this problem, NOT the businesses that use debt and LOCs to fund operations.

@Will_0001 says:

The CME Fed Funds Future market is betting rate cuts start in May 2024.

@Brandywine53 says:

The only thing that is ridiculous is the fact that our own government can't just create their own money. They have to borrower from the "Central Bank" AT INTEREST. The monetary system is corrupt and designed to keep countries enslaved by their own currency and monetary policy.

@DrKnowsMore says:

The FED will not be lowering rates. Give me a break. They have no choice but to hold higher for longer because inflation will Skyrock at the moment they try to lower rates. Until price is drop, you can't have higher rates

@Edna825 says:

I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300,000, yielding almost no gains for quite some time.

@mpvincent7 says:

900 million not billion… still a lot but dang!

@chuckswadling3318 says:

Just imagine where we would be if Trump was a dictator like Putin and could stay in office for 11 years! We would be first in the world in everything and all world economies would want to export only to us.

@visionhustlefreedom says:

I always enjoy your videos, RJ. Interest rates need to be kept higher for longer. The economy is supposedly so great with low unemployment and job creation exceeding expectations… I personally think cutting rates will just lead to more perpetual inflation.

@kayhoffer2981 says:

NO!!!!!!!! No $ to Ukraine

@taratong9074 says:

I not for funding any thing overseas

@michaels7258 says:

Yes, aid to Ukraine is extremely important.

@warezit says:

???? Key Takeaways for quick navigation:

00:00 ???? Upcoming Economic Events and Potential Rate Cuts
– Discussion of imminent economic events and potential Federal Reserve rate cuts.
– CPI release and FOMC meeting.
– Speculation on Federal Reserve's decision-making.
00:56 ???? U.S. Government's Maturing Debt
– U.S. government faces $8.5 trillion debt maturing next year.
– Impact of this debt on fiscal policy and potential rate cuts.
– The necessity for the government to address its significant debt obligations.
01:36 ????? Political Dynamics in the U.S. House of Representatives
– Negotiations in the U.S. House over a funding bill.
– The role of House Speaker Mike Johnson in these negotiations.
– Controversies surrounding military aid and government spending.
03:44 ???? Market Predictions and Federal Reserve's Stance
– Market predictions on Federal Reserve's rate cuts.
– Jerome Powell's stance on the current rate cuts.
– Federal Reserve's focus on restrictive monetary policy to combat inflation.
05:21 ???? Impact of U.S. Government Debt Maturity in 2024
– Challenges posed by the maturation of a significant portion of U.S. government debt in 2024.
– The potential rise in interest expenses due to the higher borrowing rates.
– The St. Louis Fed's report on the costs of rolling over government debt.
08:06 ???? Federal Reserve's Role and Economic Policy
– Clarification of the Federal Reserve's role and its mandate.
– Janet Yellen's responsibilities in managing the nation's borrowing.
– The debate over whether the Federal Reserve should cut rates.
09:03 ???? Consequences of Higher Interest Rates on Businesses
– Impact of higher interest rates and tighter lending standards on businesses.
– The shutdown of Smile Direct Club as a case study.
– Increasing financial challenges for companies with significant debt.

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@joshuayancey5838 says:

Maybe try taxing the f+$&!ng corporations. We won't because they own our gov't. Good luck, everybody!

@anthonyvalenti9093 says:

So, another 60,000,000,000 on top of the already 120,000,000,000 for a war that was lost before it began. 400,000 estimated Ukrainian soldiers dead, 40,000 Russian soldiers.

I guess our politicians need a little extra cash for Christmas. And Zelensky and crew will need a little travel money.

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