‘Soft landing’ narrative nuked: PPI collapsing, nearly 60% of CPI components in deflation, retail sales trending negative. Profit Recession just getting started with 34 companies reporting -6.7% so far…
Non existent credibility cause the Fed is again out of synch with the market and the data. Yields dropping as a new Fed policy error of staying too high too long would kill any soft landing narrative. Powell's got some explaining to do. pic.twitter.com/GVsDvjIqab
If Empire new orders index is any indication of where ISM new orders will come on Feb. 1st, and there certainly appears to be a correlation, it's going to be ugly. -31.1 is the 3rd worst monthly number since the survey was created in 2001. pic.twitter.com/2T15Bq0CYR
Former Secretary of Labor Robert Reich believes the Federal Reserve’s rate hikes are not working and said the central bank should stop believing it can easily stop profit-price inflation by hiking interest rates.
Soft landing for the US economy? It is looking less and less likely. The bond market (10-year Treasury yield) just shed -14.1 basis points. As I always told my investments students, any 10 basis point shift in the 10-year Treasury yield is significant.
Let’s start wit the US business leaders survey of current conditions. It just crashed to -21.4
Then we have US industrial production, down -0.7% in December. And is up only 1.65% year-over-year as M2 Money growth stalls.
