Episode 141

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Published on:

16th May 2023

Inflation Isn't What You Think, Tipping is Out of Control and Pot Calling the Kettle

The number of Americans filing new claims for unemployment benefits have jumped to a 1-1/2-year high, pointing to cracks in the labor market as demand slows, potentially giving the Federal Reserve room to halt further interest rate increases next month. With demand cooling, inflation pressures are subsiding. Data from the Labor Department indicates that producer prices rebounded modestly in April, leading to the smallest annual increase in wholesale inflation in more than two years.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.


They discuss a Labor Department report showing that the consumer price index (CPI), which measures the cost of a broad swath of goods and services, increased 0.4% for the month, in line with the Dow Jones estimate.


Chris and Saied look at comments from JPMorgan Chase CEO Jamie Dimon that markets will be gripped by panic as the U.S. approaches a possible default on its sovereign debt, calling the default "potentially catastrophic" for the country.


They also offer some thoughts on a statement by New York Federal Reserve President John Williams, who cautioned that interest rate increases will take a while to work their way through the economy before inflation returns to an acceptable level.


Join Chris and Saied for this fascinating and informative conversation.


Enjoy!



What You’ll Learn in this Show:

  • Why services inflation is really consumer discretionary spending more than anything else.
  • Why housing prices are excluded from the Labor Department’s CPI report.
  • The odds of a Fed rate cut this year.
  • Why the Fed's 'stress tests' for banks failed.
  • And so much more...


Resources:

"Jamie Dimon warns panic will overtake markets as US approaches debt default" (CNBC via Instagram)

"The family behind First Citizen's Bank is $1 billion richwer since SVB" (Bloomberg Business via Instagram)

"AirBnB stock craters - founders lose $4 billion in one day" (Forbes via Instagram)

"Inflation rate eases to 4.9% in April, less than expectations" (CNBC)

"Wholesale prices rose just 0.2% in April, less than estimate as inflation pressures ease" (CNBC)

"Fed’s John Williams says rates could be increased if inflation doesn’t come down" (CNBC)

"Worries linger about financial stability following bank rescue, Fed report shows" (CNBC)

"US weekly jobless claims hit 1-1/2-year high; inflation subsiding" (Reuters)

"Brits are being offered no-deposit 100% mortgage loans for the first time since 2008" (CNBC)

"We May Be Getting Used to High Inflation, and That’s Bad News" (The Wall Street Journal)

"Icahn, Under Federal Investigation, Blasts Short Seller" (The Wall Street Journal)

"Inflation Eased in April but Remains Stubbornly High" (The Wall Street Journal)

"Can Inflation Fall Fast Enough for the Fed?" (The Wall Street Journal)

"How the Fed’s stress tests failed to stop a banking crisis" (Fortune)

"Monthly Mortgage Payments Could Surge 22% If US Defaults" (Bloomberg)





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About the Podcast

The Higher Standard
This isn’t a different standard, it’s the higher standard.
Welcome to the Higher Standard Podcast, where we give you ultra-premium, unfiltered truth when it comes to building your wealth and curating the lifestyle of your dreams. Your hosts; Chris Naghibi and Saied Omar here to help you distill the immense amount of information and disinformation out there on the interwebs and give you the opportunity to choose a higher standard for yourself. Sit back, relax your mind and get ready for a different kind of podcast where we elevate your baseline with crispy high-resolution audio. This isn't a different standard. It's the higher standard.

About your host

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Christopher Naghibi

Christopher M. Naghibi is the host and founder of The Higher Standard podcast — a rapidly growing media platform delivering unfiltered financial literacy, real-world entrepreneurship lessons and economic commentary for the modern era.

After nearly two decades in banking, including his most recent role as Executive Vice President and Chief Operating Officer of First Foundation Bank (NYSE: FFWM), Christopher stepped away from corporate life to build a brand rooted in truth, transparency, and modern money insights. While at First Foundation, he had executive oversight of credit, product development, depository services, retail banking, loan servicing, and commercial operations. His leadership helped scale the bank’s presence in multiple national markets from $0 to over $13 billion.

Christopher is a licensed attorney, real estate broker, and general building contractor (Class B), and he brings a rare blend of legal, operational and real estate expertise to everything he does. His early career spanned diverse lending platforms, including multifamily, commercial, private banking, and middle market lending — holding key roles at Impac Commercial Capital Corporation, U.S. Financial Services & Residential Realty, and First Fidelity Funding.

In addition to his media work, Christopher is the CEO of Black Crown Inc. and Black Crown Law APC, which oversee his private holdings and legal affairs.

He holds a Juris Doctorate from Trinity Law School, an MBA from American Heritage University, and two bachelor degrees. He is also a graduate of the Yale School of Management’s Global Executive Leadership Program.

A published author and sought-after speaker (unless it’s his son’s birthday), Christopher continues to advocate for financial empowerment. He’s worked pro bono with families in need, helped craft affordable housing programs through Habitat for Humanity, and was a founding board member of She Built This City — helping spark interest in construction and trades for women of all ages.