Will the narrative begin to rise about the amount of Treasuries the Fed will let roll off its balance sheet? As noted yesterday, the Committee indicated it will let $5 billion roll off its balance sheet versus $25 billion. FRB Chair Powell stated the reason for this course of action was related to federal debt … Read more
As widely expected, Federal Reserve officials held the benchmark interest rate steady for second straight meeting, though they telegraphed expectations for slower economic growth and higher inflation. The Committee also said it would begin slowing the pace at which it is reducing its balance sheet. The decision to hold rates steady comes as the President’s … Read more
The FOMC is expected to hold rates steady today as all attention will be focused upon the Committee’s updated economic projections…aka the dot plot. For now, policymakers have signaled they are in a wait and see mode, seeking further progress on inflation and greater clarity on the economic impact of Trump’s policies, chief amongst them … Read more
Markets were initially bifurcated as a rout in tech mega caps weighed heavily upon some of the indices. Bloomberg writes 90% of the companies in the S & P 500 gained yesterday even as the “Magnificent Seven” at one time sank over 3%, with the cohort ultimately closing about 1.1% lower. Retail sales were released … Read more
At the conclusion of the FOMC meeting, the Committee will update its interest rate forecasts. How will it differ from the one issued in December? Will the Fed acknowledge the uncertainties around inflation from tariffs, where it is still predominantly more bark than bite? Will the Federal Reserve increase the neutral rate from around 2% … Read more
Data showed producer inflation data of 0.0% last month, compared with expectations of a 0.3% increase. Excluding food and energy, the PPI fell 0.1%, the first monthly decrease since July. The core was up 3.4% from a year earlier. However, categories that inform the Fed’s preferred inflation measure—the personal consumption expenditures price index—were largely firmer. … Read more
The narrative is rising about market volatility. In the matter of three weeks, Bloomberg writes the Magnificent Seven has declined about 18% and is down about 14% YTD. At the time of this writing, the NASDAQ 100 is off about 10% YTD and about 13.5% from its late December apex. The S & P 500 … Read more
Equities were again rattled after a further escalation of tariffs. The President stated he is increasing the steel and aluminum tariff on Canadian goods to 50% form 25% to retaliate against Canada’s move to place a 25% tariff on electricity sent to the US. At the time of this writing, the selling is considerably broader … Read more
The NASDAQ 100 had its worst day since 2022 wiping out over $1 trillion in value according to Bloomberg. This marquee index is on pace for the worst quarter since early 2022. The S & P 500 has closed below its 200-day moving average for the first time since November 2023. Its fall from its … Read more
February’s unemployment data was largely as expected, perhaps some hints of softening as for example a decline in the labor participation rate to a two-year low, but otherwise the data is largely in line. However, the fast-moving events of recent weeks have not been captured in February’s data. The real test for how public spending … Read more
