Inflation came in hotter than expected yesterday, effectively killing Wall Street’s expectations of a May 1 interest rate cut. The Fed funds futures market is now pricing in a 94% probability that rates remain unchanged at 5.25% to 5.5%. So now what?
Remember those three rate cuts that the Federal Reserve all but promised this year… the ones that Wall Street enthusiastically priced in? You might want to curb your enthusiasm.
Wall Street will obsess over inflation data as it always does, but the fact of the matter remains that we do need to see inflation fall before the Federal Reserve will cut key interest rates.
When the world looks like it’s crashing down, investors take solace in knowing their wealth is protected by the most powerful military force in the history of mankind. But what happens when the safe haven itself appears to be at risk because those in charge of protecting it – namely the Federal Reserve – are the ones generating the chaos?
Any system that depends that heavily on the judgment of one very fallible man is inherently unstable. Yet that’s where we are. So, what happens next? Read my Freeport Society friend Louis Navellier’s take on it!
The 2-year and 10-year Treasury yield curve has been inverted for over 630 days now. So, who’s to blame for this inversion… and what can be done about it? Look no further than the Federal Reserve.
When the world looks like it’s crashing down, investors take solace in knowing their wealth is protected by the most powerful military force in the history of mankind. But what happens when the safe haven itself appears to be at risk because those in charge of protecting it – namely the Federal Reserve – are the ones generating the chaos?
I have an alternative explanation for why three congressmen have quit in the past four months… and why over 50 members of Congress and senators have decided to not seek reelection. They’re rats fleeing a sinking ship.
If you want to understand why the world is a mess, you have to understand the incentives for the people pulling the levers.
Of everything that happened this week, four events stand out. Let’s start with the irony…
