Jerome Powell Is Consistent
His Ammunition Is Solidly In Place
Time is not on my side this weekend as the weather here in Texas is conducive to the “outdoor” yard work activities. I’m not as young and spry as I used to be but it’s time to address what’s left on the “honey-do” list. How about you?
On or about Sunday evening I’ll update “the week that was” and reveal a stock I have been buying as its performance this year left a lot to be desired. It’s that time of year to “pick up” securities that were “taken out to the woodshed” last year with the hopes they’re overall returns in 2024 will far exceed 2023. Tune in for this “paid for” article and join in with others who like what they read. It only costs $99.00 a year so it’s still cheap at twice the price. It’s free for the first month so there’s no risk to take a look. Give it a try and thanks.
Powell Is Locked & Loaded
I’ve often compared Jerome Powell to Paul Volcker for many reasons. Volcker, along with Treasury Secretary Regan, President Reagan and Congress addressed inflationary tendencies in the early 1980s with “the right stuff”. We all won that battle and it looks like we’re on the winning side again today. We’ll find out more next Wednesday when Powell and the Federal Reserve announces their interest rate decision. It’s not going to change.
Some of you out there expect rates to start heading lower. With a reported 3.7% rate of unemployment “y’all” must be eating Yellen’s mushrooms. Come on people, this isn’t going to happen. Until the job market wage pressures have abated, Powell isn’t going to change anything and he and the Federal Reserve shouldn’t.
Sure, the rate of inflation has been tempered but it remains far too high for Powell to start bringing rates down. Maybe next year, no let me suggest “probably” next year but for now, change is not something I’m looking for. Despite the increase in bonds, gold and other Dollar related commodities, the “interim” decrease in WTI oil, orange juice, cocoa, sugar, natural gas and the Yen, there’s still a great deal of work to be done.
Powell has been very consistent in his fight against inflation. He’s stated many times that he needs to see “softening” in the unemployment rate. In short he needs to see a recession to drop rates in any significant or lengthy manner. I agree and fully support him. You should too.
Always keep in mind that this is an election year; a very important election year. It’s best that everyone keep both ears and eyes open to what’s transpiring. If there’s a big question that needs answered it relates to determining which end of the curve Yellen will suggest to fund the deficit. I have an opinion there based upon the current yield curve, my belief that recession is around the corner and unemployment is heading a bit higher, maybe much higher, we’ll see. I’m suggesting and hope the “powers that be” sticks to the shorter end, slightly higher interest rates when funding the wasteful spending we are subject to. It’s going to take a very different administration to make significant moves going forward. Powell has an influence in these decisions and so do you. Vote, make your voice known and tell Washington you’ve had it, just like I have.
Oh well, back to the Udemy courses, Wondershare and enjoying the second night of Hanukkah. I got underwear and a new pair of slippers last night. I’m proudly wearing both just like I did when I was a kid. Those were the days, eh? We didn’t have a care in the world, just homework and figuring out what we were going to do over the holiday weekend. For me I’m working in the yard. How about you?
It’s hard to believe that 43 years ago John Lennon was assassinated. I remember the news being transmitted as I prepared for finals at Carnegie Mellon’s business school. Thoughts ran through my head like “what the hell” is going on folks; is this world we live in “falling apart”? Post John and Robert Kennedy along with Martin Luther King Lennon’s death had meaning. It’s great that we have his music but it sure would have been much nicer to have his life. My “heart” went out to you then John and 43 years later it still does. Bless your soul and thank you for all you gave us during your all too short visit in our world.