Fed Slowing Demand?

Is the Fed starting to slow demand for goods and services?  I believe the current answer is “Yes!”  Mortgage interest rates have doubled off the low, now over 6%. Lumber (which is priced in US dollars per 1000 “board feet”) is priced @ $585 today, down from $1456. Used Car sales are starting to slow. […]

What Else??

Clearly, we are running far behind in our attempt to bring down inflation.  Last week’s Consumer Price Index (CPI) number was red hot, with an increase of 8.6% over the last 12 months.  That’s a 40-Year high! We know inflation has been running hot for a while, however the Fed has only raised rates 2 […]

Social Security – Some Good News!

The Social Security and Medicare Board of Trustees released their annual report.  Solvency of both programs has been a concern for years.  The good news is the report showed both Social Security and Medicare to be in a more positive position, as of now. The Social Security Trust fund is now scheduled to deplete in […]

Markets Bounce Higher

Nice to see the markets bounce higher.  It’s been about 7 weeks.  Most US major stock market indexes rose over 6% last week. Part of the reason for the bounce is the Federal Reserve’s preferred inflation gauge, the Core Price Consumption (PCE) index was reported increasing 4.9% in May, down from 5.2% in April.  A […]

My Thoughts….

The S&P 500 hit it’s current all-time high on January 3, 2022, reaching 4797.  As of last Friday, the index closed @ 3901.36.  The quick drop of 18.7% left the index just shy of closing in on the definition of a “bear” market.  A close of 20% from the S&P index high, technically classifies as […]

<strong>Inflation Peaking?</strong>

Is Inflation in the “peaking” process?  The easy answer is yes, however the challenging question is when will the process be over? Last week’s Consumer Price Index (CPI) report for April showed the first drop in eight months.  The core CPI number reported was 8.3%, which is down from 8.6% in March.  Many investors were […]

Inflation Data

Over the next few months, the most important day for the economy and markets will be around the 11th of each month.  That is when inflation data from the prior month is reported. This Wednesday, May 11th, the Consumer Price Index (CPI) from April will be released.  The reading for March was 8.5%.  The Fed’s […]

3 Issues Front & Center

3 issues are clearly front and center!: The Federal Reserve & Inflation The Russia/Ukraine War and it’s impact on the European Economy The Covid Lockdown in China This week, Chairman Powell will announce a rate hike, most likely .50%.  He will also announce the beginning of letting the balance sheet run off, meaning the massive […]

What Else?  The Fed!

The S&P 500 was having an ok week through last Wednesday, until Fed Chair Jerome Powell said rates will be raised by .50% at the May Federal Reserve Meeting.  This should not have come as a surprise as the .50% increase has been in the news for a few weeks.  Why did “known” news still […]