Fed's Rose-Colored Glasses Mask Main Street's Pain

Market Sizzle: Bank Failures Surge, US-China Copper Clash, Inflation's Easy Breeze, Rental Construction Skyrockets ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more [Fed's Rose-Colored Glasses Mask Main Street's Pain]( Market Sizzle: Bank Failures Surge, US-China Copper Clash, Inflation's Easy Breeze, Rental Construction Skyrockets [Josh Belanger]( May 15   [READ IN APP](   Did you know that out of 5.5 million drug tests, about 31,000 were flagged for cheating? That's right, while drug positivity rates hold steady, the craftiness in skirting the results has hit a 30-year peak! It seems like some folks are turning the drug test into a real-life game of "Beat the Test". But as marijuana laws evolve, employers are scratching their heads wondering how to roll with the changes. Now, who’s got the cheat sheet for that? Inflation Dips, Rate Cut Hopes Up In April, US inflation cooled off a bit. It's the first slowdown in six months. Prices rose by just 0.3%. The Fed might lower interest rates because of this. They've been high to help control prices. Still, not all is clear yet. We need more good months like this to be sure. Housing costs keep going up, making it hard for overall prices to fall. Other costs like car insurance and medical care also rose. Clothes prices had their biggest jump since June 2020. Although the price of some goods fell, it's not enough to make a big difference yet. Economists are watching closely. They hope that prices will keep going down so that our money can go further. Copper Craze Ignites Global Tug-of-War Copper is a big deal right now, and everyone wants a piece. The U.S. and China are especially keen to get more copper because it's crucial for electric vehicles and tech stuff. Recently, the U.S. tried to get a stake in a big copper company in Zambia to keep China from controlling too much copper. There's a huge bidding war happening around the world. Countries like the UAE, Japan, and Saudi Arabia are also getting involved. They all know copper is key to modern tech, like electric cars and data centers. The U.S. doesn't have its own big mining sector, so it's a bit behind China. The U.S. is working with other countries and companies to boost its copper supplies. They're even planning big projects in places like Africa and Pakistan to get more minerals. This copper rush shows just how important these metals are to our future. Everyone's racing to make sure they don't get left behind in the tech boom. Bank Bust Boom Looms Almost 50 US banks might fail soon. This is because the cost of borrowing money is high, and banks have some other troubles too. Last year, three big banks went under, which made people worry about other banks, especially smaller ones. If the US cuts interest rates this year, banks could lose money. They pay a lot to keep customers' money, and if rates drop, customers might take their money somewhere else. This could cause more banks to fail. Banks in one area could have extra trouble if their local economy has problems. Also, a bank in Philadelphia just had to be taken over by another bank because it was losing money and spending too much. Experts say the US has too many banks. Right now, there are over 4,500, but they think this number should be about 2,500 in ten years. They expect more banks will join together, but not because the government says so. Rental Rush Revolution Builders are making new rental houses faster than ever. Why? Because buying a home is super expensive now. In 2023, builders finished 93,000 rental homes. That's a lot more than last year. These homes are everywhere, from small cottages to big houses with yards. High home prices and interest rates mean many people can't buy homes. So, they rent instead. Even people with good money find it hard to buy homes today. In places like California, new rental homes are popping up. For example, one developer is making over 200 rental homes that cost between $3,000 and $3,700 a month. Even though it's tough to get loans for new projects, builders think this boom in rental homes won't stop soon. More people, like older folks and young families, prefer renting over buying. That's why builders and investors keep making more rental houses, especially in sunny places. Quick Sizzles: - Boeing on Thin Ice: DOJ warns of potential prosecution for Boeing due to misleading safety information related to the 737 MAX crashes. - Red Lobster in Trouble: Faced with high debts, Red Lobster prepares to file for bankruptcy to reduce financial burdens. - Fed Cautious on Rates: Jerome Powell signals continued high interest rates, awaiting clearer signs of inflation reduction. - Real Estate Downturn: Investors retreat from real estate, hitting a 15-year investment low amid high borrowing costs. - BlackRock Bets on Bitcoin: BlackRock challenges for the top spot in bitcoin funds, embracing digital assets after initial skepticism. - US Hikes Tariffs on China: Biden administration increases tariffs on Chinese EVs and chips, intensifying trade tensions and protecting American industries. That’s your Market Sizzle; good trading, good life! You're currently a free subscriber to [Josh Belanger](. 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