Posted on 01/17/2024 10:51:49 AM PST by Kaiser8408a
The Fed had better think twice about expected rate cuts. The market just isn’t feeling it.
Treasury yields rose Wednesday, with the 10-year yield touching almost 4.10% as investors focused on stronger-than-expected December retail sales and the latest remarks from Federal Reserve members.
The yield on the 10-year Treasury note was recently up 4 basis points at 4.108% after briefly getting to 4.117%, the highest since Dec. 13. The 2-year Treasury yield rose by around 11 basis points to trade at 4.335%.
December’s retail sales data indicated strong consumer demand at the holidays. Retail sales increased 0.6% for the month, above economists’ estimates of 0.4%, as compiled by Dow Jones. Excluding autos, sales rose 0.4%, which also topped a 0.2% estimate.
On Tuesday, yields jumped after comments from Federal Reserve Governor Christopher Waller, who suggested that while the central bank will likely cut rates this year, it may take its time.
At the World Economic Forum in Davos, more European Central Bank members indicated that markets were getting ahead of themselves on rate cut projections.
Rising interest rates are going to bite a big chunk out of The Fed’s massive ass (I mean balance sheet). Of course, The Fed sends the bill to Treasury. Gee, no wonder Biden/Yellen want so much money!
There is something wrong with letting aging politicians like Biden (81), Grassley (90), Pelosi (83), etc. borrow vast sums of money to spend when they will likely not be around for another 10 years.
(Excerpt) Read more at confoundedinterest.net ...
At this point, the only thing they are looking for is a short-term solution that might make things look good up to November. What happens after that is a bridge they’ll cross later.
That’s right. All decisions from now to November will be about the election, and not about what’s best for the country. Economically, that is a dangerous place. “Strong” consumer spending sounds good but all it means is that credit card debt will soar to even higher record levels.
Presumably that's in dollar terms. That means it's just inflation. Probably on an inflation-adjusted basis, sales were flat.
Retail sales are not adjusted for inflation, thus not strong.
Why would they cut rates when we have inflation?
Gee I wonder why people spent more in December???
Could it be something called Christmas.
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