Rachel Siegel, Taylor Van Zeiss, FED discussed on News, Traffic and Weather


Fastest pace in 40 years. It's just as true today as it was a month ago. Rachel Siegel is covering it for The Washington Post and spoke with Taylor van zeiss. I hate to be repetitive because that is the exact line I use a month ago, but what do the June numbers show now? And what are the primary drivers? You know, it's a story that I wrote a month ago as well and I'm sure that it's not a reminder that many people need about how expensive gas has become groceries rent. An enormous driver of the most recent inflation report were energy and gas prices. That's a pretty direct line from Russia's invasion of Ukraine. And we're seeing that now take up an even larger share of the overall inflation data and that obviously trickles down to just about everything that people spend money on. The money they have to pay to get to work, everything in between. Was there any sign of improvement from the May numbers to the June numbers? There really wasn't. You really have to squint and maybe turn something upside down to try and find any sort of good news in this report, more broadly in the economy. There are some positive signs that the housing market, for example, is starting to cool off, but home prices aren't reflected in this inflation report. We also know that over the last couple of weeks, gas prices have come down from the highs that we saw in the middle of June, but I wouldn't necessarily say that that suggests big moves for the July report either. Well, yeah, I was just going to bring that up because I know at least my own gas tank was a little cheaper to fill up today than a week ago. But at this point, what's the expectation for action from the fed because they've got a meeting this month and I assume we're going to be talking about another rate increase, right? Yeah, so we're definitely talking about another rate increase and over the past couple of weeks, the fed has been setting the expectation that they could do another three quarters of a percentage point hike. It's the same size of a hike that they did at their June meeting. And all expectation is that they would act just as forcefully in July. I'm certainly keeping my ears out to whether or not they start to send out any signal that they have to move even more aggressively. I'm not seeing that overwhelmingly today, but the signal is obviously that they have to act swiftly and they have to ask people to act forcefully. When you look at these reports that come out, whether it's the CPI numbers or fed report or whatever. How long in your mind should it take for us to get an idea to know if their strategy of raising interest rates is successful at lowering inflation. At one point do we say, all right, throw up your hands. Let's try something else. Yeah, it's a really difficult question, especially because interest rates and really all of the fed's tools, they work with a lag and they work with a lag that takes time to fill through the entire economy. That's a really big problem if you're trying to assess progress in real time and the fed has made clear that that's what they're looking for too. They can't necessarily close out the end of the day saying, well, we think we're going to start to see progress in a couple of weeks of good enough for us. They also need to see real tangible progress, but their tools a don't work that quickly and be there so many forces in the economy that are really pushing in the other direction. Rachel Siegel with us on northwest news radio, reported for The Washington Post covering economics. You can find the report, all kinds of charts and graphs to look into as well online at Washington Post dot com. Rachel, thank you. That's Taylor van zeiss. Your stock charts dot com money update on northwest news radio. Office vacancy rates in the Seattle area rose slightly in the second quarter to 10.19%. The vacancy rate has now risen 8 of the last ten quarters, according to commercial real estate firm cuter Matthews, which caused the Seattle office market unsettled and volatile. Foot traffic is dropping at Starbucks as inflation takes hold. Data firm place her AI says visits to coffee chains in general is now below quick service restaurants for the first time all year. One factor may be that Starbucks has raised prices three times since October. The Dow lost 208 points to close in 30,773. NASDAQ and the S&P 500 both lost 17 points. This is rob Smith, but the northwest news radio. The government of a Texas county where 21 people were killed in a school shooting are hoping for a special session on guns. Uvalde county commissioners approved a resolution today, making the request to governor Greg Abbott. It specifically says Texas should raise a legal purchase age of a semi-automatic long gun to 21. The shooter who opened fire inside rob elementary in May bought to rifle shortly after his 18th birthday. A former CIA software engineer was convicted today in New York in the biggest theft of classified information in the agency's history, ABC's Erin koterski as more. The jury in Manhattan federal court found Joshua schulte guilty of leaking a trove of CIA cyber espionage tools known as vault 7, published by WikiLeaks, the material exposed how the CIA hacked into iPhones, Android devices, and smart televisions of private consumers, schulte who defended himself called the government's case of political witch hunt after someone stole their crown jewels. Prosecutors called schulte and angry

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