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19 Sep 2024

Among the reasons why the Fed cut 50bps this week:

1) Inflation risk is LOWER than Employment and Consumer risk 2) The sticky component of inflation is shelter. For shelter inflation to go down we need to see more housing supply and for this we need to get lower mortgage rates = jumbo rate cut does help 3) They MUST get front-end rates lower as this colossal wall of debt matures (source: Lawrence McDonald, Bloomberg)

19 Sep 2024

After yesterday jumbo Fed rate cut (days after core CPI MoM reaccelerarting), who doesn't have this chart in mind???

The Second Wave of Inflation. This is what the Fed is thinking but isn't saying out loud. If you expand the dataset to the CPI's of Western economies, 87% of the time there's a second wave. Source. TS Lombard, Eric Hale

18 Sep 2024

Soft landing? Hard landing? Or no landing?

Atlanta Fed Q3 Real GDP growth Nowcast model just hit 3%...

18 Sep 2024

Safe is risky. #DF24

Source: Vala Afshar @ValaAfshar on X, marketoonist.com

17 Sep 2024

The US yield curve continues to steepen.

Yields on 10-year Treasuries are the highest vs 2-year yields going back to 2022. Source: Lisa Abramowitz, Bloomberg

17 Sep 2024

BREAKING: Prediction markets are now pricing-in a 48% chance of a 50 basis point Fed rate cut this week.

Odds of a 50 basis point rate cut have gone from 2% to 48% in just 5 days, according to Kalshi. This will be the first Fed policy decision without a 90%+ consensus since 2020... Source: The Kobeissi Letter

16 Sep 2024

BREAKING: The Restaurant Performance Index (RPI) fell -1.3% in July to 97.7 points, the lowest level since the 2020 lockdowns

This index tracks the health of the restaurant industry in the US by measuring sales, customer traffic, labor, and overall business conditions. Since 2021, this metric has fallen by ~8.0%, marking the largest drop since it was launched in 2002. Such a low level in the index has only been seen during recessions. Americans are pulling back on dining out as prices have been sharply rising and recently hit new all-time highs. Since 2020, food prices away from home have increased by 27.0%, and fast food prices have jumped by 31.0%. Eating out is becoming a luxury... Source: The Kobeissi Letter, Trahan Macro Research

13 Sep 2024

US fiscal stimulus: no surprise, we haven't seen any slowdwn in terms of spending ahead of the elections...

Source: Bloomberg, www.zerohedge.com

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