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...

The War Takes Its Toll

April 22, 2022 The IMF’s global GDP forecast for 2022 was recently downgraded by 0.8% from 4.4% to 3.6% largely because of the war between Russia and Ukraine.  Typically the revisions to IMF projections are 0.2-0.3%.  Thus, the negative impact of the war on GDP growth...