Chris Rupkey
Chris Rupkey
adding drawing fed fuel global guard market markets nearer raises rates rebound reckoning reminded stock
The market is on guard after Broaddus reminded us that the day of reckoning when the Fed raises rates is drawing nearer and the rebound in global stock markets is adding fuel to the fire.
decided path people prices resistance selling
The selling abated, prices stabilized and people decided the path of least resistance is up.
businesses energy expect factor fed increased inflation interest major makers pass policy power prices pushing rates received rising sign worried
Prices received rising so much is the first sign that businesses have increased power to pass on these energy-price increases. Energy will shortly be a major factor in the inflation equation, and this is what the Fed is worried about, so expect policy makers to keep pushing interest rates higher.
country entire production running
Manufacturing production in the entire country is running flat-out at the moment.
continues economy fast fed gain growth inflation pressures slack slow stop time
Growth isn't fast enough that the Fed has to brake the economy, and at the same time it isn't slow enough that the Fed can stop and watch. Inflation pressures can still gain a foothold as the economy continues to take up slack resources.
business capital coming equipment housing purchases slack spending strong timing
Business capital spending is coming on strong and the timing of these equipment purchases could not be better. Business spending will take up the slack as the housing slowdown cools consumers' appetites.
close commodity economy hikes june members minutes past prices rate series since sounds stale until
While it sounds as if most members see that the series of rate hikes since June 2004 is close to the end, it's not over until the economy slows. The minutes are a little past their stale date. Commodity prices are soaring.
fed officials point suggest
There is nothing at this point to suggest that Fed officials will pause.
broken budget constrain continue despite effort ink likely record records red remains side spending
The red ink was a one-month record in February, and the records are likely to continue to be broken this year. The spending side of the budget ledger remains out of control, despite some effort to constrain these expenditures.
credit due
We were due for a pullback in credit,
action fed gone looking market moves though
Expectations of Fed action have gone though the roof. The market is looking for two 25-basis-point moves and one 50-basis-point move before the presidential election.
geared industrial june last next production reported unlikely
It suggests that the industrial production setback reported for June is unlikely to last and that production geared up the very next month.
amount deficits economy handle larger reagan
It's not like the deficits back in the Reagan years because the economy is much larger now, so theoretically we can handle this amount of debt.
consumer fears gasoline higher home oil prices rise spending
consumer spending has not been dented by the hurricane-inspired rise in gasoline prices and fears of higher home heating oil bills.