As the Government Shutdown chugs along, the drag on the US Economy continues. With a .04% daily GDP drag – Gross Domestic Production (bluntest measure of economic growth) in a 2-3% annual range, the shutdown headwinds are stacking up.
Flying without Instruments
It is true many challenge the Economic Reports as they are released here in the US! Compared to many countries around the world … who fudge their numbers, US Economic numbers garner the best certificate of authenticity possible. The last clean Economic report was the recent CPI – Consumer Price Index which was mostly complete before the shutdown. Most new economic reports are not being released and if they are may be a bit fuzzy….The FOMC has to make a decision without Economic data!
FOMC set to cut short term rates again – Our Friends in the Bond Pit are noting the Economic Headwinds –
With some Economic headwinds, low Economic data, bond market participants frontrunning (predicting) a lowered rate, a rate decrease looks to be in the cards today!
For now, lower short and long term rates are in the cards….if we finally get a restart of the Government, it will be interesting to see Bond Market Participants reactions! Grab the popcorn!!
Have a good “Lowered Rates” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
