A key recession signal is flashing red:
US construction spending fell -2.8% Year-Over-Year in July, one of the biggest drops since the 2008 Financial Crisis. This also marks the 6th consecutive monthly decline.
Month-over-month, construction spending has declined in 10 out of the last 11 months, the longest streak in 15 years.
Over the last 50 years, such a sustained decrease in construction expenditures has occurred only during recessions, except in 2018.
Meanwhile, construction employment has fallen for 3 consecutive months, the longest streak since 2012.
What is happening with construction? The failure of the Federal Reserve to lower key Interest Rates.
For MONTHS, Fed Chairman Jerome Powell has flatly refused repeated suggestions from the President to lower Interest rates. It seems to many people that Powell, and several Governors on the Federal Reserve Board, are intentionally sabotaging the economy, to harm Trump, politically.
The information above is tied directly to what the Federal Reserve has been doing. High Interest rates make it too expensive for people to buy houses. Houses get built, but people can't afford to buy them.
So construction on new houses has to stop, because houses aren't selling.
It's that simple.
This trouble is caused by the Federal Reserve. Intentionally.
Maybe the Governors on the Federal Reserve should be reminded that the general public can retaliate against them, personally and directly. People can show up at their homes and protest; that would make these Federal Reserve Governors REAL popular with their uber rich neighbors in their ritzy neighborhoods!
Protests at all hours of the day and night would do wonders for property values in those rich neighborhoods, too.
One wonders how those wealthy neighbors would react if busloads of protesters start showing up on their block because a neighbor, who happens to be a saboteur on the Federal Reserve Board of Governors, is misusing his official position, to make a political decision?
Yes, I bet those Federal Reserve Governors would be real popular when all their neighbors can't sleep because of the noisy protesters, can't get in or out of their driveways, or even drive up to their own homes, because thousands of protesters are all over their neighborhoods.
