To The Moon

The world of investing can feel like a roller coaster, but don't worry, as this post seeks to share what you need to know about the latest developments relating prices and jobs as a new investor. Let's break down some of the recent news about jobs, prices, and what the Federal Reserve (or the "Fed") might do next. First, let's talk about jobs. This June, the U.S. added 209,000 jobs, which sounds like a lot, but it was actually fewer than what experts thought would happen. However, it's not all gloomy, as people's hourly earnings didn't change, meaning the money they're making from their jobs remained steady. The overall unemployment rate dropped a bit, but the jobless rates for Black and Hispanic workers did increase, which is concerning. So, what does all this have to do with the Fed? The Fed can raise or lower interest rates to help keep the economy steady. Most people think they're going to raise rates a tiny bit at their meeting in July, based on all these job numbers. Next up is something called the Consumer Price Index (CPI). This measures how much the price of things we buy, like groceries and clothes, changes over time. When the prices go up a lot, that's called inflation. The new CPI report is coming out on Wednesday. Experts think it's going to show that prices went up 3.1% over the last year, which is less than the 4% they went up the previous year. Even though prices are still going up, they're going up slower than before, which could be a good sign. But they're still going up faster than the 2% the Fed would like to see, which is why most folks think the Fed will raise interest rates a bit. But, even if the Fed does raise interest rates, it won't go on forever. At some point, they'll stop, which is what Candice Tse from Goldman Sachs thinks is going to happen soon. This could mean the economy is getting to a more stable place. Finally, on Thursday, we'll see another report called the Producer Price Index. This tells us about how much the prices for businesses are changing. But unless there's a big surprise in these reports, it's likely that the Fed's plans won't change much. To wrap up, as new investors, it's important to keep an eye on these things. They help us understand where the economy might be heading. But remember, investing is a long-term game, so don't stress too much about the monthly ups and downs!