Name: BREAKING: Federal Reserve CANCELS Rate Cuts - Gas Prices Skyrocket, Stock Market Plummets!
Uploaded: 2026-03-18T21:32:46.000Z
Duration: 15 min 59 s
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As of a few hours ago, the Federal Reserve officially confirmed that they will not be lowering interest rates for the foreseeable future.

Except now, out of nowhere, there's another problem that almost no one saw coming.

Private credit default rates are rising fast.

Reports show that interest rates are suddenly expected to move even higher in the next three months.

At the same time that searches for can't sell a house hit an all time record.

And if that wasn't bad enough, tomatoes now taste like popcorn.

Okay, in all seriousness, with the economy now at risk of a global recession, we need to talk about exactly what's happening.

What the Federal Reserve just said, the impact this is about to have on everything, money.

And then finally, what this means for you watching.

Because these next few weeks will determine whether or not this is a temporary scare or the start of something much bigger that no one's prepared for.

Like, although, before we start, as usual, if you appreciate the last minute breaking news videos like this, it would mean the world to me if you hit the like button or subscribe if you haven't done that already.

Seriously, if you've never hit the like button before, it's totally free.

And as a thank you for doing that, here's a picture of a capybara.

And also big thank you to Gemini for sponsoring this video.

All right, so in terms of where all this starts, we need to talk about the absolute boogeyman of the economy, and

Like it or not, our entire economy is dictated by the price of oil.

And even though that sounds dramatic, the more oil goes up, the more expensive everything else becomes.

Like, think of it this, your groceries, your Amazon packages, the plane you fly on, the fertilizer that grows food, every single one of those items used oil.

And if that sounds impossible, remember, trucks run on diesel, ships run on fuel.

So when the price of oil goes up, literally everything else rises alongside with it.

In fact, according to Federal reserve research, a 10% increase in the price of oil raises the energy CPI by roughly one and a half percent immediately.

Well, it's a chain reaction because businesses see their margins squeezed, so they have to raise prices.

Consumers then spend more, which leads them with less money left over for everything else.

And as this continues, inflation returns and everything goes to sh.

As of a few days ago, it was reported that February's inflation came in at 2.4%, except this measured time before oil prices saw their largest increase since 2022.

And if oil remains above $100 a barrel, we could soon see inflation hit 3.5% faster than a lot of people expect.

For example, the national average for a gallon of gas jumped from $2.81 in January to $3.21 last week to $3.53 this week, which is a 10% increase in just seven days.

And if this trend continues, analysts warn that her current oil closure could become three times the severity of the Arab oil embargo of the 1970s, when the markets fell almost 45%.

This is why the Federal Reserve is really in an impossible position.

Because on the one hand, the job market is softening, the economy is weakening, and

personal savings is declining, which would benefit from lower rates.

But on the other hand, oil is surging, prices are rising, and

inflation might quickly return, which would require the Federal Reserve to raise interest rates so that everything doesn't get out of control.

Essentially, this is the latest stagflation crisis that so many people were worried about.

This occurs when inflation remains high during a time that unemployment increases.

And current conditions could be the perfect storm for this to actually take place.

So what does this mean for the stock market?

A few months ago, I mentioned how interesting it was that not a single analyst forecasted that the stock market would end the year negative.

Like back then, every single expectation was that the stock market would continue to skyrocket higher, with estimates for the S&P 500 ranging between 7,100 to 8,100 by the end of the year.

The last time every expert was unanimously bullish?

And again in 2001 before the markets fell another 13%.

Anyway, I mention this because so far The S&P 500 is trading about 5% from its all time high.

And even though there's certainly potential for it to continue falling further it at this point, it's important to remember that pullbacks like this are extremely common.

In fact, this typically happens on average three times a year.

And 10% drops happen on average every 18 months.

Even 20% drops happen every four years or so.

Basically implying that what we're seeing right now isn't anything unusual.

Of course, in terms of what's causing this specific Stock market sell off.

It's really just a combination of geopolitical uncertainty, rising oil prices, heightened inflation expectations, and

a lot of political uncertainty, basically turning itself into a perfect storm, especially with the stock market already coming off record highs.

However, here's where things start looking a lot more optimistic.

The Carson Group compiled 40 major geopolitical events over the last 85 years.

And they found that on average, The S&P 500 loses only about 0.9% in the first month after an event, but

then rises 3.4% over the following six months.

Or as Ryan Detrick puts it, historically, what in the near term seems like a geopolitical crisis tends to be largely resolved from a market perspective over the ensuing six months.

Basically, the market's not reacting negatively to the Federal Reserve pausing rate cuts, since that's been largely priced in for the last few weeks.

Instead, it just comes down to uncertainty.

Uncertainty with how high can oil prices stay for how long?

And are there any other repercussions throughout the economy that could bite us in the butt?

Now, if you believe that the United States and the entire global economy are irreparably damaged from a five week conflict, then yes, absolutely, we could go down from here.

But historically, these declines tend to be a good buying opportunity for those that don't panic.

Even though it's already fallen 50% from the peak.

Surprisingly over the last month, Bitcoin has outperformed gold in The S&P 500, boosted by steady demand and a broader pool of money buying in to diversify into different assets.

Apparently futures have already been negative for the last 14 consecutive days, which is the longest streak since 2022.

And when this happens, it usually coincides with bottoms.

On top of that, long term holders dramatically reduced their selling throughout February, suggesting that we might actually see a lot more stability from this point on.

Although in terms of what this means for housing prices, the global economy, and

what the Federal Reserve just said as of a few hours ago, here's what you came for.

Because most people have absolutely no idea what's about to happen.

Although before we go into that, I gotta say, one of the most important rules of investing that everyone needs to be made aware of is to never put all of your eggs in one basket.

Like for the longest time, I had a huge portion of my net worth tied up in real estate and it worked really well until eventually it didn't.

And when that happens, the smartest thing that you could do is diversify.

This is why I've been paying a lot of attention lately to stocks, cryptocurrency, ETFs and treasuries.

Because the goal is not to bet everything on one investment, but to build flexibility.

And that's one of the reasons I've been using today's sponsor, the Gemini credit card, all the time.

With this, instead of earning airline points or credit card rewards that largely go unused, I'm able to earn cryptocurrency back on my everyday purchases, turning my spending into something that has the potential to grow over time.

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