Live Conference Call with Economist Marci Rossell, Ph.D.

On Wednesday, June 1st, Prosperity Planning hosted a live conference call with economist Marci Rossell, Ph.D. Marci engages audiences nationwide, communicating complex economic issues in a way that is relevant to people’s lives, families, and careers. Her animated style was honed when she served as the popular, lively Chief Economist for CNBC. Prior to her career in broadcast journalism, Marci served as an economist with the Federal Reserve Bank of Dallas and earned a PhD in economics from Southern Methodist University.

Marci’s commentary focused on the Federal Reserve’s plan to normalize monetary policy, including increasing interest rates and quantitative tightening. She talked about the impact on inflation, financial markets, and the real economy.

Here are some of her key takeaways:

  • Rising interest rates cause volatility throughout the market.

    • The worst returns have been in cryptocurrency, non-fungible tokens (NFTs) and Venture Capital.

  • The Federal Reserve has announced plans to increase interest rates at 50 basis point to get current inflation under control, and to control inflation expectations, a key component of Federal reserve strategy.

  • The Federal Reserve is working to shrink their balance sheet by $50B per month beginning in June and accelerate to shrinking by $95B per month beginning in September.

  • There are three main causes of current inflation: manufacturing, oil, and food

    • Current scenario is largely because of a very quick recovery from the pandemic and a sharp spike in oil and food prices specifically.

    • The war between Russia and Ukraine is further escalating inflation especially when it comes to oil and food.

  • Low unemployment rates will last indefinitely with 350,000 fewer people turning 18 every year due to the much smaller size of Generation Z vs. Millennials.

  • The housing market is due for a return to more rationality in prices.

    • We can have a healthy housing market with interest rates at 6% or 7%.

For Marci’s full commentary and answers to participant questions, the audio recording is available below:

Marci provides her own analysis and views on the economy today and her comments should not be construed as investment advice. Please consult your advisor for investment advice as it pertains to your specific needs.