>> Steve: PRICES ON THE RISE
INDEED.
AMERICANS FEELING THE STRAIN AS
INFLATION HITS A 40-YEAR HIGH OF
CLOSE TO 8%.
NOW THE FEDERAL RESERVE IS
STEPPING IN AND IS EXPECTED TO
RAISE INTEREST RATES THIS WEEK
FOR THE FIRST TIME SINCE 2018.
WHAT DOES IT MEAN FOR YOUR
WALLET?
AS YOU CAN SEE RIGHT HERE IN THE
BIG STUDIO.
HOST OF MAKING MONEY FOX
BUSINESS CHARLES PAYNE.
>> GOOD MORNING.
>> Steve: WHY IS THE FEDERAL
RESERVE GOING TO JACK UP
INTEREST?
>> TRYING TO SLOW DOWN, YOU
KNOW, THE ECONOMY.
THAT’S TYPICALLY WHAT THEY DO.
THESE INTEREST RATE HIKES IF YOU
CAN THINK ABOUT IT AS SPEED
BUMPS.
THE REASON WHY IT’S
CONTROVERSIAL NOW, FIRST OF ALL,
THEY HAVE YOU HAD HAVE PUT THEM
IN A LONG TIME AGO.
SECONDLY, IT’S RARE THEY DO IT
UNDER CONDITIONS THAT WE HAVE
RIGHT NOW.
AGAIN, IT’S USUALLY WHEN THE
ECONOMY IS HOT AND ACCELERATING.
WE ARE IN AN ECONOMY NOW THAT’S
DECELERATING.
SO IT’S ANOTHER EXPERIMENT, IF
YOU WILL, THAT ON THE PART OF
THE FEDERAL RESERVE IN PART
BECAUSE THEY SHOULD HAVE
PROBABLY BEEN TAKEN THIS ACTION
AT LEAST A YEAR AGO.
AT MINIMUM.
>> WERE YOU DRINKING YOUR COFFEE
WHEN THE WHITE HOUSE ESSENTIALLY
BLAMED.
[LAUGHTER]
>> Steve: VLADIMIR PUTIN FOR THE
PUTIN PRICE HIKE THE INFLATION
WAS AT 40 YEAR HIGH NOW THEY ARE
BLAMING PUTIN.
>> BLAMED PUTIN, THE TRUMP CARD
EXPIRED AND OVER THE WEEKEND
THEY STARTED BLAMING THEIR OWN
VOTERS.
SO I MEAN IT’S LIKE, I GUESS
WHEN YOU GET TO THE BOTTOM OF
THE DECK OF THE BLAME CARD, THE
LAST ONE IS LIKE BLAME THE
PEOPLE THAT PUT YOU IN OFFICE.
THEY DON’T CARE.
YOU KNOW, IT IS SORT OF
DESPICABLE BECAUSE, LISTEN, A
LOT OF THINGS FACTOR IN TO
INFLATION.
BUT ARGUABLY THAT $1.9 TRILLION
WAS COMPLETELY UNNECESSARY.
THE SO-CALLED COVID RELIEF ACT,
THE AMERICAN RESCUE PLAN WHICH
BY THE WAY IT ITS BIRTHDAY LAST
WEEK.
HAPPY BIRTHDAY, THE ONLY THING
SINCE THEN PRICES HAVE GONE
ABSOLUTELY THROUGH THE ROOF AND
ALL OF THOSE GAINS, LAST MONTH,
ALL THE WAGE GAINS WERE ERASED.
PEOPLE’S WAGES WERE DOWN 2.6%
YEAR OVER YEAR.
>> Steve: GAS HOTELS STUFF IS
THROUGH THE ROOF.
ONE OF THE THINGS MY WIFE AND I
NOTICED WHEN WE GO TO THE
GROCERY STORE, SURE THE PRICES
ARE UP.
IT JUST SEEMS LIKE EVERYTHING IS
A DOLLAR MORE OR WHAT A COMPANY
IS DOING IS PUTTING LESS STUFF
IN THE PACKAGES.
>> YEAH.
>> Steve: BIG NEWS STORIES OVER
THE WEEKEND DORITOS THEY HAVE
TAKEN FIVE CHIPS OUT.
APPARENTLY THAT HAPPENED A YEAR
OR TWO AGO.
YOU WERE TALKING YOUR WIFE THE
RESEARCH DEPARTMENT ABOUT THIS
SEGMENT AND SHE WENT TO THE
PANTRY.
>> SHY SAID YOU KNOW WHAT?
SO MY SISTER-IN-LAW CAME BY THE
HOUSE FRIDAY WITH THIS TUNA
FISH.
SHE WAS REALLY PUMPED.
SAID IT WAS A FEW PENNIES LEFT.
WIFE WENT TO THE PANTRY
COMMENSURATE.
THE PRICE DIDN’T GO DOWN ENOUGH
TO OFFSET HOW MUCH LESS TUNA
FISH YOU ARE GETTING.
EVERY DAY PEOPLE SEE THIS ALL
THE TIME.
THIS IS WHAT YOU LIVE WITH AND
IRONICALLY I’M NOT SURE HOW THE
FEDERAL RESERVE EVEN ACCOUNTS
FOR THIS.
THIS IS INFLATION IN REAL LIFE.
THIS IS WHAT HAPPENS, YOUR MONEY
GOES A LOT LESS FURTHER.
AND YOU GET FEW IRTHINGS.
AND PEOPLE REALIZE THIS ON
FRIDAY WE HAD THE CONSUMER
SENTIMENT NUMBER OUT.
IT WAS SO AWFUL.
IN FACT, IT WAS AT A POINT THAT
IT’S ALWAYS CORRELATED TO
RECESSIONS.
YOU KNOW, LISTEN, I DON’T KNOW
IF THE WHITE HOUSE PLANS TO DO
ABOUT IT THE BLAME GAME ISN’T
WORKING.
INDEPENDENTS SIX MONTHS FROM NOW
THEY SEE THINGS A LOT WORSE.
DEMOCRATS SEE THINGS A LOT
WORSE.
FORGET ABOUT REPUBLICANS.
SO THE AMERICAN PUBLIC IS UNITED
ON ONE THING.
WHEN YOU GIVE THEM THIS AND TELL
THEM IT’S THIS, THEY SAY, YOU
KNOW, WHAT WAS THAT?
THERE WAS A PHRASE USED IN THE
LAST SEGMENT THREE LETTERS.
>> Steve: CAN YOU MAKE CHICKEN
SALAD SOMETHING LIKE THAT.
CHARLES, WE ARE GOING TO BE
WATCHING YOU OVER ON MAKING
MONEY WITH CHARLES PAYNE 2:00