Fed Meeting
Yesterday, the Fed hiked the Fed Funds Rate by 25bp, as expected by the markets. In their statement they said:
-Job gains have picked up, unemployment remains low Because you pay peeps not to work
-Inflation remains elevated True
-Banking system is sound and resilient LOL
-Recent developments will result in tighter credit conditions and weigh on economic activity, hiring, and inflation See above if banks were sound and resilient would not be happening
-The Committee anticipates that some additional policy firming may be appropriate Pick your poison inflation or deflation
-Will continue QT Even though they injected $300 Billion last week and are looking at back-stopping $2 Trillion More?
Projections were largely a nonevent as they did not change much for the end of 2023:
-GDP 0.4% from 0.5%
-UR 4.5% from 4.6%
-Core PCE 3.6% from 3.5%
-FFR 5.1% unchanged
-No cuts in 2023
Press conference:
-Goods inflation has been coming down for 6 months
-Housing services is a matter of time passing (44% of core PCE)
-Non housing services sector still have not seen progress (56% of index)
-SVB management failed badly, did not hedge risk But everyone that wanted to could dress like a girl and stick a dildo up there ass in the bank lobby - lot of minorities with ZERO banking/finance got paid big bucks to suck each other off & BLM got paid.
-See likelihood of credit tightening, which is why they had less stiff statement
Powell made several mistakes during his press conference – He said that shelter made up 44% of Core PCE, which it doesn’t. It makes up roughly half that, but does make up 43.2% of Core CPI. He also said that services minus shelter makes up the remaining 56%, which is also untrue. It’s a bit scary that the Fed chair has such a bad handle on the reports he is following to dictate monetary policy.
He is also wrong that inflation has not been coming down – We have seen substantial progress. It is nice to see he finally agrees with us about shelter just being a matter of time before it cools in the reports, but he seems so concerned with services ex shelter. So, what is still rising in that category? Airline fares, pet services, cable and live streaming, and motor vehicle insurance, maintenance, and repairs. So Powell wants to kill the economy and jobs over inflation being persistent in these areas.
Our country is run by a set of complete DUMB-ASSES
Carry On!