Of course we won’t know the actual happenings of the FOMC meeting next week until the future, but at a minimum we will have a Jay Powell news conference next Wednesday at 1:30 p.m. (central) to provide some entertainment of sorts. Of course todays CPI report that was ‘on forecast’ gives the FOMC cover to raise only 25 basis points or maybe none at all. We will see what the producer price index comes in at tomorrow–PPI is forecast at up .3% versus .7% last month.
Interest rates are spring back up with the 10 year now up 12 basis points to 3.64% while the 2 year treasury is up 31 basis points to 4.34%. Guess folks think the bank thing is over–but probably not. Regulators are swarming all over the banks right now most likely and it wouldn’t be a surprise to see them seize a few more–you know they are out there.
In the meantime we have banking and insurance issues bouncing nicely higher–folks are likely looking for exits on some of these issues–folks that caught the falling knife yesterday may just be looking for a ‘trade’–a quick profit and there is nothing wrong with that move at all.
Looks like we have ‘cool heads’ in the room as I survey the comments–mostly in the Sandbox Page – that is great to see.