It suggests that the industrial production setback reported for June is unlikely to last and that production geared up the very next month.
Chris Rupkey
We were due for a pullback in credit
credit
The key is the stock market reaction.
key market reaction
The selling abated, prices stabilized and people decided the path of least resistance is up.
people resistance path selling
Cars seem to be pivotal in keeping the wheels of consumer spending turning and certainly this quarter is starting out with a thud.
starting cars
Stock losses are giving bonds some juice this morning; we're back to feeling that the economy is weak and that bonds are a buy here.
feeling giving morning economy bonds weak
We're back to expecting a rate cut on December 11. Meyer changed people's thinking by essentially saying there's no limit as to how low (the federal funds rate) could go and today we're getting an added boost from the (weak) stock trade.
today thinking limit weak trade
Expectations of Fed action have gone though the roof. The market is looking for two 25-basis-point moves and one 50-basis-point move before the presidential election.
action market expectations election
june
The Fed is still going to be on guard in terms of monitoring inflationary pressures, but this has to be good news today.
today good news
There is nothing at this point to suggest that Fed officials will pause.
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