Fed’s Waller urges caution on interest rate cuts until certainty of inflation decline

Fed's Waller wants more evidence inflation is cooling before cutting interest rates

Federal Reserve Governor Christopher Waller recently made headlines with his announcement that he will need to see more evidence of cooling inflation before supporting interest rate cuts. In a policy speech delivered in Minneapolis, Waller questioned the rush to cut rates, citing higher-than-expected inflation readings for January as a reason for caution. Waller acknowledged the … Read more

How Vulnerable Is The Equity Market? Fed’s Soft Landing Doesn’t Rule Out Hard Landing For Stocks

Global Equity Market Capitalization

How vulnerable is the equity market? It’s very susceptible. The cyclically-adjusted price to earnings ratio is running twice as high as the historical average. Meanwhile, Fed is in the early stages of raising official rates and draining liquidity which has proven to be the death knell for the equity market. First, of course, no two … Read more

Why we are not in another 2008 Housing Bubble

Housing Bubble

On March 29, the Dallas Fed issued a report warning that for the first time since the early 2000s, a “bubble” is “brewing” in the housing market. The authors found that prices are becoming “unhinged from fundamentals” and that the buyers are showing troublesome signs of “exuberant behavior.” The revival of the “B” word by … Read more