It’s A FOMC Day!

  • Currencies & metals fall to the dollar’s pressure…
  • The stupid things that people do…

Good Day… And a Wonderful Wednesday to you! Well, my stomach would not give me any relief yesterday, and I sat through the ballgame, with stomach pains, left the game early, which is not on my agenda, and came home and went to sleep… Woke up about 9pm last night… UGH! But… After eating some chicken noodle soup, I felt much better, stomach pains were gone, and all was well again… Whew! Procol Harum greets me this morning with their song: Conquistador…

So, we’re back to the markets buying dollars, eh? Why? Because the wholesale inflation (PPI), was stronger than expected, thus leading traders to believe that the Fed Heads just might hike rates instead of cutting them…  Now, logically thinking, is what I do here… One would think that these traders just might want to wait until the FOMC meets tomorrow, and discusses rates before they make moves?   But NOOOOOOO! So, the dollar is back en vogue, and you don’t want to step in front of a moving bus here, so…. 

We need to batten down the hatches once again… The dollar gained 3 index points in the BBDXY yesterday, and the currencies took one to the mid-section… Gold lost $3 on the day, and closed at $2,157.59, and Silver lost 16-cents to close at $24.99… What happened to all that Gold euphoria that was taking place early last week? The threat of higher rates here in the U.S. has Gold reeling right now… 

The price of Oil remained trading in the $82 handle yesterday, and the 10-year Treasury also remained in the previous day’s clothes, with a 4.30% yield. 

In the overnight markets last night… the markets bought more dollars, and the dollar bugs are dancing in the streets this morning… The BBDXY gained 3 more index points overnight, the euro seems to be resisting the pressure to drop in price more… But the rest of the currencies are not in good health this morning. Like I said yesterday, it’s time to batten down the hatches, until we hear what the Fed Heads have to say later today… 

Gold is down $5 to start the day today, and Silver is down 14-cents. The price of Oil slipped below the $81 handle overnight, and the 10-year saw some buying and its yield fall to 4.28%…  All four of three of those asset classes, are dependent on what the Fed Heads do and say today… 

Yes, it’s a FOMC Day… The day, that a few months ago, was being pegged by the bond boys, and economists as the day the first rate cut would happen… A lot of water has gone under the bridge since then, and now those that were pegging that rate cut have gone back under the rocks they live under… So… What will the Fed Heads tell us this afternoon?  Well, I have my opinion, which is about as worthy as a pay toilet in a diarrhea ward! But here goes… I believe the Fed Heads to be torn between two lovers, once again… Should they tell the truth and say that rates aren’t going anywhere, and if inflation should go higher they would look to hike rates, or… do they lie to us like they usually do, and tell us that inflation is under control, and they are looking at a rate cut later this year? 

It’s one or the other here folks… It would be nice for the Fed Heads to fess up, and tell us the truth, and not sugar coat it… 

Good friend, Dennis Miller of www.milleronthemoney.com, sent me this, and it had me scratching my bald head… So, leave it to the lawmakers in California, the land of nuts, to make stupid laws… This time, it was how electric bills will be distributed… California’s new law will tie electricity charges to household income. Lawmakers believe this will alleviate the financial burden on lower-income families while asking wealthier residents to contribute more.

Well, if you ask me, I would think that it just might spur more Californians to move from the state.. And if enough of these higher income folks leave the state, where does that leave the State’s electricity income? 

The stupid things that people do these days, right? I sit here and scratch my bald head, and think… “What stupid thing are they doing now?”

Like our lawmakers, and here’s where I turn to Bill Boner for his thoughts on this next subject: “One of the funniest things to happen last week was that the free thinkers in Congress voted overwhelmingly to ban TikTok. One of the reasons given was that lawmakers thought the app was ‘dumbing down America’s youth.’

Really? Not Facebook. Not the New York Times. Not Paul Krugman. Not Morning Joe. Not the US Congress. Not the public schools. Not the parents who let their children waste their time with electronic gadgets. Neither Biden nor Trump. Nope. ” – Bill Bonner from his newsletter: bonnerprivateresearch@substack.com    

Well, with all this dollar strength going on right now, even the change of interest rate policy in Japan, hasn’t helped the yen, yet… In fact, the yen has lost ground since the first rate hike announcement in 17-years!  Remember how I told you that this would be HUGE for Japan? Well, it’s still HUGE, but I guess the other problems in Japan are bigger than a rate hike… Like I’ve always said, “Japan is a basket case”… 

For What It’s Worth… Well, this is a little offbeat this morning, but that’s what the FWIW is all about… This article talks about how the Great Resignation isn’t quite over, and it can be found here: Workers are still quitting their jobs in droves in these industries (usatoday.com)

Or, here’s your snippet: “The Great Resignation has fizzled out.

But in some industries – like personal care services and trucking – workers are still quitting jobs in large numbers compared to before the pandemic, typically to take higher-paying positions.

The widespread job-switching in some fields is noteworthy because those struggling with high turnover generally are doling out bigger pay increases, both to hire the job-hoppers and to hold on to existing employees. Yet in other industries – like retail and professional services – quitting has dipped below pre-pandemic levels as wage hikes have moderated in a sign of a cooling job market and economic uncertainty.

“The Great Resignation has come and gone” but quitting “varies across industries,” says economist Justin Begley of Moody’s Analytics, an economic research firm.

Broadly, so-called quits rates have been “higher in in-person sectors where workers have been in short supply” since the pandemic, says Julia Pollak, chief economist of ZipRecruiter, a job search site.”

Chuck again… Ok, so if the Great Resignation is over, then why are restaurants, bars, etc. still having problems getting people to come back to work? My local place here in Juno Beach Florida, doesn’t open their back bar until the weekends… It used to be a hopping place all the time! But if the locals know it’s closed during the week, they go somewhere else! 

Market Prices 3/20/2024: American Style: A$ .6578, kiwi .6031, C$ .7354, euro 1.0843, sterling 1.2595, Swiss $1.1225, European Style: rand 18.9079, krone 10.6891, SEK 10.4936, forint 364.92, zloty 3.9892, koruna 23.2298, RUB 92.70, yen 151.67, sing 1.3441, HKD 7.8235, INR 83.17, China 7.1983, peso 16.83, BRL 5.0308, Dollar Index 104.09, Oil $81.86, 10-year 4.28%, Silver $24.85, Platinum $894.00, Palladium $984.00, Copper $4.04, and Gold… $2,152.42

That’s it for today… Well, so far this morning, all is good with me… Thank goodness! Tomorrow, will be the 2nd to last spring game, with no game on Friday for me… I prefer the team always plays on 3/22, so I can spend my birthday at the ballpark, but that’s not to be this year… UGH! And yes, this year, will mark the 17th year, I’ve had to deal with cancer, and health problems… I’m so glad that, so far, I’ve dealt with them pretty good, so that no one knows if I’m ailing or not… I hope that continues! Dire Straits take us to the finish line today, with their song: Brothers In Arms… I hope you have a Wonderful Wednesday today, and please remember to Be Good To Yourself!

Chuck Butler