Federal Reserve Not Convincing
Federal Reserve pauses rate hikes despite elevated, persistent inflation.
The pause should indicate that the US economy is not as sound as the Federal Reserve portrays. However, Federal Reserve Chairman Powell suggested a further 0.50 rate hike by the end of 2023.
US core inflation remains over 5% at 5.3%.
Federal Reserve assets remain around $8.3 trillion after bailing out the banking sector.
US dollar is in a downward trend, approaching a 52 week low.
The US 2 year treasury yield (4.65%) is in an inverse relationship to the 10 year treasury yield (3.723%), indicating longer-term economic issues and a looming recession.
The Biden continues to pile on the debt with $4 trillion set to be added by 2025.
Gold steadied sideways at $1944 an ounce.
Stephen.Garvey@EmergingGlobalRealities.com