FOMC: Speed readers on your marks…

Hot off the press… Recent indicators of spending and production have softened. Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures. Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events … Continue reading FOMC: Speed readers on your marks…

Hussman’s latest: Are we there yet?

John Hussman’s July market comment Are We There Yet? I have not read ole’ Doc Hussman in years but I’ve had him linked at this site for many years and this morning took a look at his latest article. Same old Doc. Outstanding financial market realism. When the collapse comes (and I suspect it will), don’t blame Fed tightening for bursting the bubble. Once “bubble” … Continue reading Hussman’s latest: Are we there yet?

FOMC

Overall economic activity appears to have picked up after edging down in the first quarter. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures. The invasion of Ukraine by Russia is causing tremendous human and economic hardship. The invasion and … Continue reading FOMC

A pivotal juncture for gold, gold stocks

Another hot CPI fails to suppress gold With FOMC on tap with an upcoming .5% rate hike, gold got hammered and bounced back with a vengeance on ‘CPI’ Friday. The Fed will raise the Funds Rate at least .5% next week. So says not me, but the wise guys whose job it is to correctly anticipate FOMC policy. Indeed, a full 20% of CME traders … Continue reading A pivotal juncture for gold, gold stocks

Fed not hawkish; hellflation or liquidation ahead [w/ edit]

Is the Fed trying to blow another, more covert asset bubble? [edit] With a note that another, less viable option is possible as well. That would be a ‘just right’ Goldilocks gently disinflationary option similar to the 2012-2019 phase. [edit2] A subsequent post notes another reason the Fed may be erring dovish, as the Bank sector negatively diverges long-term yields (30yr has ticked the underside … Continue reading Fed not hawkish; hellflation or liquidation ahead [w/ edit]

Fed Jawbones mean business [w/ edit]

3 month T-bill yield is demanding the Fed raise the Funds rate And the Fed is listening. [edit] After this post was published another Hawkish jawbone came in the form of James Bullard and a call for a larger rate hike in March. CME Group Fed Futures traders quickly adjusted their expectations to a .5% March hike at the behest of the Bullard jawbone. The … Continue reading Fed Jawbones mean business [w/ edit]