“Right now, the best result would be to drop the averages quickly [Fed Chair Jay Powell] he can overcome it, “he said. “Powell hoped this course would not last, otherwise these coastal housing prices, new construction, Lennar homes, processed food stocks and oil prices would not fall and would not stay soon,” he added. The housing builder’s warning about its latest profits suggests that buyers are squeezing current home prices with sales slowing in some markets. Shares rose on Tuesday after the market closed on Monday due to the June holiday. While the rally was a welcome break for investors after last week’s fall, many fear the return will be short-lived as fears of a recession prevail on Wall Street. Kramer said that while it is usually in favor of higher stock prices, the Fed needs the market to fall in order to reduce inflation as well. The reason, he said, is that a declining market will cut costs and keep people in the job market. “In recent years, abundant stock market profits have allowed winners to spend like crazy,” he said. “If Powell manages to make this market fall and stay low, eliminating many of those profits, then the rich are less likely to spend aggressively and many people are more likely to stay in the workforce if they would otherwise have retired. ” he added.
