Money Matters

May 27, 2022 For months the discussion has focused on the highest inflation rate in 40 years and how to shrink it to the Fed’s desired 2.0% pace.  The Fed seems to think it can accomplish that objective by raising the funds rate to 2.75% by the end of this year and...

Business Inventories / Sales Ratio

May 17, 2022 Firms are always trying to keep their inventories in line with sales.  When the economy falls into recession, typically businesses do not cut back production as quickly as sales decline, so the inventory/sales ratio rises sharply  — which is exactly...

Tone Down the Rhetoric!

May 13, 2022 We got the message.  The Fed has convinced us it is going to be tough on inflation.  But that tough talk has scared the pants off all of us.    Fed officials have suggested the funds rate is going to 2.5% by the end of this year, 3.5% by the end of 2023,...

A Case of the Jitters

May 6, 2022 In our view, it is increasingly clear that the 1.4% GDP decline in the first quarter was largely caused by supply line challenges rather than any significant drop in demand.  Early in the second quarter the monthly purchasing managers indexes continue to...