Good morning, Readers and Subscribers:
Based on this shockingly hot inflation report, the 10-year T-note may be headed back to 5%. It’s already at 4½% this morning.
This reading makes it very difficult, if not impossible, for the Fed to ease anytime soon. In fact, one could argue it should tighten again before it gets too close to the election.
That’s unlikely, I realize, but, regardless, the market’s prior absurdly optimistic assumptions of six rate cuts in 2024 are a distant memory. Even one before year-end is highly questionable.
