In case you were busy last Holiday Shortened week (Hope you had a Happy Fourth of July) and missed a couple of important data points …. here they are
MBA Purchasing Index Continues to Do Great
First Mentioned here, back in March, last week (7-1-20) another very strong reading of the MBA Purchase index, which is an index that tracks purchases of homes, (Excludes Refinances) and gives a good future expectation view of home movement, value and transaction…
Click here for the latest release.
On a personal, in-house perspective, with an unusually high 20 and counting residential home movements SO FAR this year, we are seeing a liquid, fair and fast paced market!
Employment Update – BLS
Then, the BLS (Bureau of Labor Statics) released their update on the unemployment rates…
Yes it is still high, but the drop caught many by surprise and was a much greater drop than expected!
A pretty Good Good economic release week…again, that may have slipped by you!
Have a Great ” Good Last Week Economic Numbers” Monday!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents
The Fed, Economics, Interest Rates and Interest Rates Review Part 2 What would force the FEDs hand?
Well covered in Part 1, here, the FOMC (Federal Open Market Committee) and Capital Markets also believe currently that interest rates will stay low for longer …. maybe we are hopeful they are both wrong (No maybe, we are!) but there is one word that we know the FOMC cannot allow to get out of control …
Inflation !
Here is a great post from earlier on Dallas Fed calculated Trimmed Mean Inflation Measure, the FOMC’s favorite!
Triple the Bazooka – Who Let the Money Out!
During the 07-09 Great Financial Crisis, the FOMC then lead by Ben Bernanke, used the Feds balance sheet to purchase assets in order to lower rates, increase asset prices and calm markets….
This was unprecedented at the time….. Not today!
The current Bazooka is three times more ALREADY and will most certainly continue to grow in size and stimulus !
What if eventually the economy takes hold, and springs back to life –
Here is the traditional measure of inflation, Consumer Price Index from the BLS (Bureau of Labor Statistics) – again we like the afore mentioned Trimmed Mean and so does the FOMC!
Not to worry, we will be watching that 2ish % level closely…..
Inflation may occur, forcing the Feds hand at higher rates — time will tell!
Have a Great “FOMC and Interest Rates Part 2 Conclusion” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents
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Posted in Economy, FOMC, Forecast, Interest Rates, Investing/Financial Planning, Market Comments
Tagged BLS, CPI, FOMC, Inflation, Interest Rates, Trimmed Mean