by confoundedinterest17
Fire! European stock valuations have fallen to their lowest level since 2012.
The US dollar index is soaring (not helping Europe) as the Federal Reserve tightens monetary policy to fight the fires of inflation.
Meanwhile, Atlanta Fed’s real-time GDPNow forecast for the third quarter is at least above zero (barely) at 0.271%.
Fed officials continued to hammer home the central bank’s hawkish outlook, with Atlanta President Raphael Bostic said he supports raising rates by another 1.25 percentage points later this year. Meanwhile, the People’s Bank of China said it will accelerate the use of targeted loans.
Bond volatility is rising.
The 10-year US Treasury yield was down -20 basis points yesterday and up +10 basis points today. This is the Fed Rollercoaster Effect.
The Dow is down another 400 points today as the Fed’s Sugar Rush ends. Perhaps the main Federal Reserve building in Washington DC should be renamed “The Sugar Shack”.
In related news, the Biden administration will apparently replace Treasury Secretary Janet Yellen with… someone else?
In the meantime I’ll have a bottle of wine to kill the pain of inflation and Fed tightening.
