The Fed

Team of Fed Speakers Push Back on Inflation Worries but Also Talk Taper

  • April new home sales fall and March was revised lower, 5.9% decline m/m 
  • Home prices pop more than 13% – (that’s not inflationary?)  Fed speakers try to quell inflationary worries – see bullet above, it’s not working  Fed’s Clarida says the time will come to talk tapering
  • Gold futures touch 1900 after the close of trading
  • Chemical Activity Barometer up again in May
  • Sector Rotation Overview 
  • S&P futures are higher this morning 

Tuesday’s Market Snapshot:  

  • Silver and Gold led the markets as the precious metals’ momentum continues.  
  • Bonds trade higher as a risk off option. 
  • Nasdaq 100 shows marginal gain on the day  
Here is an example of noise, not information: two minutes before the close on Tuesday, the Fed’s Daly said, “we are discussing talking about tapering.” Is this a riddle? They’re talking about potentially talking about something? It sounds like a meeting about a meeting. No wonder people get confused.  
I coined a phrase a back in 2013, (year of the Taper Tantrum) that sums this up. It’s not what the Fed does, it what the Fed says they’re going to do that matters. If the Fed said they’re going to raise rates next week, would the markets wait around? Nope, they’d raise rates for the Fed by selling bonds, even before the Fed had a chance to act.  

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