Tag Archives: jerome powell
Reality Check September 2024
Summer break is over. School is back in session. Football rules the weekend. With the turn of the month, and the approaching autumn season, comes a reality check. A time to pause and take stock of where things stand. A time to make decisions.
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Fed to End Inflation Fight Before Job is Done
Fed rate cuts in the face of a CPI reading that’s above its inflation target won’t immediately boost economic growth. But they may buy a little relief on the Treasury’s net interest on the debt budget item. So, too, they may serve to incite another inflation flareup. Gold, if you hadn’t noticed, is back over $2,400 per ounce. Continue reading
This Inflation Script Won’t Last
The Shiller’s cyclically adjusted price-to-earnings (CAPE) ratio for the S&P 500 is currently 34.66. This is representative of a stock market that has lost all touch with reality. It even exceeds the 31.48 CAPE ratio hit in 1929, just before the stock market crashed and the onset of the Great Depression. Continue reading
Why the FOMC Wants to Cut Rates
Capital follows a wide-ranging lifecycle. First it is imagined. Then it is produced. Later it is consumed. Ultimately, it is destroyed. How exactly this all takes place involves varying and infinite undulations over decades and centuries. Continue reading
