The Consumer Keeps Spending

September 13, 2024 One of the mysteries of the current expansion has been the contrast between consumer confidence – which is terrible – and consumer spending – which is not.  All of the various consumer confidence surveys are close to the low point reached in the...

The Fed Joins the Party

September 6, 2024 The employment report for August was the icing on the cake.  The labor market continues to cool.  The Fed is going to lower the funds rate at its FOMC gathering on September 18.  It will most likely be a 0.25% cut to the 5.0-5.25% range.  But some...

That Was Quick!

August 16, 2024 It looks increasingly likely that the market jitters earlier in the month were temporary and caused by a few weak data points combined with the unwinding of the Japanese yen carry trade being used to finance bond purchases in the U.S. and elsewhere. In...

Déjà Vu, All Over Again

August 9, 2024 Following the release of several soft data points highlighted by the June employment report, the market quickly concluded that a recession is imminent and the fixed income market priced in a full percentage point of Fed rate cuts by December.  Given...