Jim Bianco joins Fox Business to discuss Economic Data Sentiment, Market Reaction After the First Rate Cut & the Bond Market with Charles Payne.
The idea that lower rates will reduce interest income and rein in spending is classic Modern Monetary Theory thinking. Its basis is the wealth effect. But if cutting rates produces booming stocks, it can supercharge spending and increase inflation.
Today's topics include a rising tide lifts all boats, a look at the dow as it crosses 40k, Secretary Yellen & debt management, stock returns during different presidencies, updating households' purchasing power, bonds' rough start to the year, Fed officials play the waiting game, a startup boom, and China's attempt to fix property market
The economic data since January has been strong. As a result, 10-year yields rose about 80 basis points, hopes for Fed rate cuts were dashed, and stocks rallied. But in recent weeks, the payroll report came in below expectations and initial claims unexpectedly jumped higher. CPI did not produce a number that is likely to move the needle much.
Join us today, May 16 for our next conference call.
Today's topics include more on yesterday's inflation data, hard vs. soft economic data, the case for a soft landing, startup boom in the US, the problem with propping up a currency, warnings over debt levels in US & EU, the retail crowd's forecasting record, the dollar, China continues to diversify away from dollar, and who owns the bitcoin ETFs?
Jim Bianco recaps the CPI Report, the Equity Market's Reaction & the 2% Inflation Target on CNBC's "The Bond Report" with Rick Santelli.
Year-over-year inflation came in right at expectations in April. Supercore inflation, a measure closely watched by the Fed, rose for a sixth straight month. The data is unlikely to move the needle much one way or another in the Fed's mind, so any Fedspeak will likely kick the can down the road until the next CPI release.
Today's topics include more confirmation of higher for longer, private equity activity surged in Q1, household debt, meme stocks return, on buying assets with sticky inflation, gasoline demand, more surprise BoJ moves, and China's attempts to save property market