Subject: Re: PPI core producer prices @ 3 yr. high
This is likely to put the kibosh on an interest rate cut in September. I am surprised that the market is not cratering today.
It also makes it more likely that Trump will replace Powell at the Fed- which in turn makes an interest rrate cut more likely.
Wall Street looks at what Trump did at the BLS and probably factors in a coming ratr cut.
It’s now the most probable and profitable short term bet, even though long term, it spells disaster. But, they figure, it only takes half a second to reverse a trade, so tomorrow is another day.
Wall Street is not set up to care about such things as ethics or the impact of economic decisions on lives- just the bottom line, and that bottom line is measured on an increasingly shorter time line.