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Fed’s Goolsbee Says This Is a ‘Strange and Unprecedented Moment’ for U.S. Economy: MWMar 1, 2023 - 05:48:12 PST
New Chicago Federal Reserve Bank President Austan Goolsbee on Tuesday said this was a 'strange and difficult moment' for the U.S. economy.
Mar 1, 2023 - 05:38:54 PST
The former Treasury Secretary said he would be surprised if the Fed was able to avoid a recession while extending efforts aimed at bringing down inflation.
The US stock market overall continues to look overvalued, despite a protracted bear market. Rekindled inflation would point towards value as a factor to focus on for outperformance.
Bundesbank President Joachim Nagel said he supports a more rapid reversal of the European Central Bank’s bond-buying to help tackle inflation, with more large interest-rate increases also a possibility beyond a planned hike this month.
US equity futures ticked higher as speculation that central banks are likely to stay hawkish for the coming months weighed on gains. German government bonds extended declines on hotter-than-expected inflation data.
The yen has room to weaken further as Japan’s deteriorating international trade position adds to pressure to maintain a softer currency, potentially hindering the Bank of Japan’s scope to battle inflation with tighter monetary policy.
The yield on six-month bills rose above 5% on Feb. 14, making it the first US government obligation to reach that threshold in 16 years. That yield is slightly higher than those on 4-month and one-year bills, reflecting the risk of a political skirmish over the federal debt limit when it comes due.
For the past year, both the Biden White House and the Fed have been desperate to usher in a (mild) recession in the US to break the back of runaway inflation and the wage-price spiral with little success. But judging by the surge in bankruptcy filings, they are about to get their wish.
January’s optimism about the bond market seems like a long time ago.
Car Debt Is Piling Up as More Americans Owe Thousands More Than Vehicles Are WorthMar 1, 2023 - 05:21:55 PST
The build-up in negative equity — or the amount that debt exceeds a vehicle’s value — is rattling consumers and raising alarms within the industry. Though it’s not unusual for drivers to carry negative equity, some dealers say more people are arriving at their lots up to $10,000 underwater, or “upside down,” on their trade-ins.
Oil dipped after hot inflation data led traders to anticipate that central bankers are likely to stay hawkish for the coming months, offsetting hopes for higher demand from Asia.
U.S. companies with the highest credit ratings sold a record $144 billion of debt securities so far in February to get ahead of further potential interest rate hikes, meeting strong demand from investors looking to capitalize on a spike in yields.
US equity rebounded from Tuesday's month-end pension and CTA selling boosted by overnight news that China’s economy was roaring back sparked growth optimism and outweighed concerns about sticky inflation that could keep the Fed on its hawkish path. S&P 500 futures rose 0.3% at 7:40 a.m. ET
While price inflation has eased modestly from its peak, Americans are still dealing with rapidly increasing prices, and that is squeezing their pocketbooks. And of course, the pain falls disproportionately on the working poor and people living on fixed incomes.As Ron Paul explains, rising prices and a more aggressive IRS mean servers in the restaurant industry are getting hit with a double whammy.
The Federal Reserve is bleeding money and losses are mounting.So, what does this mean? Is the central bank in danger of going under?Hardly.In fact, losing money isn't a problem for the Fed at all. But it is a big problem for the US government.
The seasonally adjusted money supply in January increased by $31 billion. This was the first increase in the money supply in five months.
This month, the conclusion is going at the top because it can be hard to read through and interpret all the data.In a nutshell, the data is sending mixed signals. Delivery volume is slowly drifting lower, but some of the underlying data is starting to show large deviations from the mean. In particular, silver saw a lot of contracts wait until the last minute to roll, similar to what we saw with gold last month.Why?
Silver demand in India is expected to increase with the introduction of new investment products. India already ranks as one of the world's biggest silver consumers.This is one of several silver-related stories in the latest edition of Silver News published by the Silver Institute.
Joe Biden might be confident in the US economy. Federal Reserve Chairman Jerome Powell might be confident about the US economy. But the average American? Not so much.The Conference Board Consumer Confidence Index fell for the second straight month in February, dropping from a downwardly revised 106.0 in January to 102.9.
What's happening at the world's largest shale oil field... the Texas Permian? Even though the top companies in the Texas Permian are continuing to drill and complete a large number of new wells, oil production has seemingly peaked and is now declining. Has the Boom and now Bust, begun...