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There WILL be rate cuts….

Posted by Richard640 @ 8:00 on July 13, 2019  
Economist David Rosenberg
 

Core crude PPI (the earliest stage of the production process) fell 0.5% after declining 4.5% in May and 1.2% in April. The YoY trend, which was already firmly in negative terrain, melted further – to -9.6% in June from -8.6% previously. Deflation risks dominate.

 
Chinese domestic demand is hurting really bad seeing as imports sagged 7.3% in June from year-ago levels. Exports contracting alongside that also speaks to punky demand conditions globally. Stock markets are in a world of their own but the economic backdrop is really sluggish.
 
 
I see a lot of noise in these latest CPI and PPI reports. The US economy is slowing and the latest JOLTS data showed hefty pullbacks in job openings and hirings. The backup in bond yields is going to present a nice buying opportunity in Treasuries.
 
The words “uncertainties” and “risks” were ubiquitous in today’s FOMC minutes. They showed up a combined 48 times compared to 36 in the minutes released seven weeks prior. Hefty rate cuts coming
 
https://twitter.com/EconguyRosie

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Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.