Fed’s Wall of Worry: Government shutdown, UAW strike, student loan repayments and $90 oil
Piper Sandler Chief Global Economist Nancy Lazar explains why the economy will get worse before it gets better on ‘Maria Bartiromo’s Wall Street.’
Just when Federal Reserve Chairman Jay Powell thought he was making strides in managing inflation, he’s now facing a five-point threat to the economy at the very least.
«It's the strike, it's the government shutdown, resumption of student loan payments, higher long-term rates, oil price shock. You know, there are a lot of things that you can look at … so what we try to do is assess all of them and handicap all of them,» Powell said during his press conference last week.
«And, ultimately, though, there's so much uncertainty around these things.»
WHY A UNITED AUTO WORKERS STRIKE COULD MEAN HIGHER CAR AND INSURANCE COSTS
Jerome Powell, chairman of the U.S. Federal Reserve (Al Drago/Bloomberg via Getty Images / Getty Images)
He made the remarks after policymakers left interest rates unchanged at a September meeting but hinted rates may stay higher for longer.
The United Auto Workers strike, which began Sept. 15, drags on. The work stoppage has already cost the U.S. economy over $1.6 billion in its first week through Friday, according to Anderson Economic Group LLC.
«Losses have been concentrated in Michigan, Ohio, Missouri, Kansas, Indiana and Alabama, where shuttered plants and laid-off workers are located,» the firm said in a statement.
«They anticipate that a longer strike will spread losses to more assembly and supplier plants, and to dealers and customers across the entire United States.»
United Auto Workers rally at the Stellantis North America headquarters Sept. 20, 2023, in Auburn Hills, Mich. (Bill Pugliano/Getty Images / Getty Images)
On Friday, UAW President
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