... monopolized the smartphone market ░░░░░░░░ did not give an ░░░░░░░░ reason for the recusal ░░░░░░░░ did cite a judicial ░░░░░░░░ rule concerning close connections ░░░░░░░░ family ties the monthly ░░░░░░░░ inflation report was published ░░░░░░░░ and it s showing ░░░░░░░░ coming in hotter than ░░░░░░░░ for the third month ░░░░░░░░ a row Chief investment ░░░░░░░░ Tim Pagliara from cap ░░░░░░░░ joins us now live ░░░░░░░░ break it down Tim ░░░░░░░░ morning to you How ░░░░░░░░ you good morning marissa ░░░░░░░░ let s just jump ░░░░░░░░ in here a lot ░░░░░░░░ get in in this ░░░░░░░░ What s your reaction ░░░░░░░░ Wednesday s report well ░░░░░░░░ really wasn t surprised ░░░░░░░░ the benefit that we ░░░░░░░░ gotten out of the ░░░░░░░░ with the drop in ░░░░░░░░ primarily has come from ░░░░░░░░ restoration of the supply ░░░░░░░░ And so when you ░░░░░░░░ behind these numbers housing ░░░░░░░░ example which is 42 ░░░░░░░░ the consumer price index ░░░░░░░░ was up for 5 ░░░░░░░░ year over year And ░░░░░░░░ know you know it ░░░░░░░░ you go to the ░░░░░░░░ gasoline prices are up ░░░░░░░░ 6 year over year ░░░░░░░░ with a backdrop of ░░░░░░░░ like that it s ░░░░░░░░ surprising at all to ░░░░░░░░ inflation come in higher ░░░░░░░░ what everybody expected what ░░░░░░░░ you expect Consumer prices ░░░░░░░░ mentioned some of them ░░░░░░░░ the board to ever ░░░░░░░░ to what we had ░░░░░░░░ Covid well it s ░░░░░░░░ very difficult situation right ░░░░░░░░ because you ve got ░░░░░░░░ policy and the Federal ░░░░░░░░ across purposes You know ░░░░░░░░ were two components that ░░░░░░░░ us to get into ░░░░░░░░ inflation that we re ░░░░░░░░ right now as part ░░░░░░░░ the pandemic response we ░░░░░░░░ interest rates to zero ░░░░░░░░ then we went from ░░░░░░░░ to almost 35 trillion ░░░░░░░░ of debt Excuse me ░░░░░░░░ trillion to 35 trillion ░░░░░░░░ debt in 2019 And ░░░░░░░░ to get inflation back ░░░░░░░░ control after that huge ░░░░░░░░ in debt of course ░░░░░░░░ Federal Reserve raised interest ░░░░░░░░ but then the federal ░░░░░░░░ has doubled down on ░░░░░░░░ And so those two ░░░░░░░░ at cross purposes I ░░░░░░░░ expect inflation to trend ░░░░░░░░ over the next 12 ░░░░░░░░ 18 months well I ░░░░░░░░ many especially those looking ░░░░░░░░ get into the housing ░░░░░░░░ was they were looking ░░░░░░░░ to the interest rates ░░░░░░░░ down So they can ░░░░░░░░ those those purchases What ░░░░░░░░ to be done then ░░░░░░░░ the meantime to make ░░░░░░░░ more affordable a lot ░░░░░░░░ structural reform And it ░░░░░░░░ a great point Marissa ░░░░░░░░ consumer price index does ░░░░░░░░ include changes in interest ░░░░░░░░ So if you were ░░░░░░░░ enough the first time ░░░░░░░░ buyer to get a ░░░░░░░░ 5 interest rate four ░░░░░░░░ ago it s now ░░░░░░░░ you re paying seven ░░░░░░░░ the misery index for ░░░░░░░░ has just risen tremendously ░░░░░░░░ What can be done ░░░░░░░░ ve got to be ░░░░░░░░ Any of the programs ░░░░░░░░ everyone talks about that ░░░░░░░░ increase the supply of ░░░░░░░░ And that s the ░░░░░░░░ We re we re ░░░░░░░░ million plus units short ░░░░░░░░ to do with appropriations ░░░░░░░░ Congress So one of ░░░░░░░░ big things they could ░░░░░░░░ recapitalize and release fannie ░░░░░░░░ and freddie mac A ░░░░░░░░ of your viewers are ░░░░░░░░ employed or know someone ░░░░░░░░ s employed there that ░░░░░░░░ take 100 billion of ░░░░░░░░ We didn t have ░░░░░░░░ borrow from the federal ░░░░░░░░ by monetizing their interest ░░░░░░░░ distributing it to the ░░░░░░░░ and housing trust fund ░░░░░░░░ would be over 230 ░░░░░░░░ for each congressional district ░░░░░░░░ the United States So ░░░░░░░░ are things that can ░░░░░░░░ done We have to ░░░░░░░░ past this inertia that ░░░░░░░░ exists and get to ░░░░░░░░ real solutions to increase ░░░░░░░░ supply of housing I ░░░░░░░░ a report this morning ░░░░░░░░ it could be September ░░░░░░░░ before we see a ░░░░░░░░ in the interest rates ░░░░░░░░ you see that happening ░░░░░░░░ all this year or ░░░░░░░░ you agree with that ░░░░░░░░ start point we re ░░░░░░░░ the camp of the ░░░░░░░░ quarter we believe if ░░░░░░░░ does occur it s ░░░░░░░░ gratuitous to the election ░░░░░░░░ It s unnecessary Sorry ░░░░░░░░ inflation was at 2 ░░░░░░░░ now and it s ░░░░░░░░ then interest rates where ░░░░░░░░ are except for the ░░░░░░░░ short tum rates three ░░░░░░░░ treasury bill interest rates ░░░░░░░░ about where they should ░░░░░░░░ So this idea that ░░░░░░░░ re going to get ░░░░░░░░ drop in interest rates ░░░░░░░░ year probably I would ░░░░░░░░ be surprised to see ░░░░░░░░ it didn t happen ░░░░░░░░ all Jamie Dimon in ░░░░░░░░ annual report this week ░░░░░░░░ mentioned that you know ░░░░░░░░ need to be prepared ░░░░░░░░ inflation higher for longer ░░░░░░░░ that rates could eventually ░░░░░░░░ hit 8 wow wow ░░░░░░░░ thanks so much for ░░░░░░░░ us And in breaking ░░░░░░░░ those those points I ░░░░░░░░ sure it won t ░░░░░░░░ the last time because ░░░░░░░░ we re in this ░░░░░░░░ we re going to ░░░░░░░░ more tips and recommendations ░░░░░░░░ you Thanks so much ░░░░░░░░ Pagliara from cap wealth ░░░░░░░░ appreciate your time and ░░░░░░░░ Thank ...