Traders,
Some rather ominous signs are showing in various markets not least of which includes the U.S. housing market. As you know, we have been periodically tracking the USHMI as a key leading indicator to show us where and when our coming U.S. (perhaps global) recession begins. We are close if we have not already begun, but I imagine there will be no ability...
The Fed money tightening policies are using interest-rates as a lever to fix a balance sheet problem.
Higher rates feed right back into the CPI, initiating the doom loop.
After the financial crisis of 2008, The Fed employed a policy action to reduce the federal funds rate to a range of 0-0.25% for seven-(7) years, during which time the CPI fell.
Post-pandemic...