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Stocks, Treasuries Slide as Recession Fears Return: Markets Wrap
Fed-driven rally fizzles on fuller assessment of policy path

Fed’s Powell signaled resolve to contain inflation at any cost



What Powell said Wednesday…..The opening paragraph is questionable at best: "Overall economic activity appears to have picked up after edging down in the first quarter."

Fed Wordsmithing 

Bear in mind the Fed had to say what it did to justify it's 0.75 point hike. Otherwise it would be admitting it was hiking into a recession. 

Note the clever wording "appears to have" as opposed to "Overall economic activity picked up after edging down in the first quarter."

And the Fed's projection material pencils in not only a soft or softish landing but nothing resembling a recession at all. 

Are they really this stupid? Arrogant? 
Retail Sales Flounder in May With Negative Revisions in April

This morning the retail sales report came in at negative 0.3 percent. Adjusted for inflation, sales declined 1.2 percent. 

The Atlanta Fed GDP Now forecast fell to 0.0% for the second quarter.
Sales 

New Home Sales Plunge 22.5% In April, 16.6% From Deep Negative Revisions
NAR Pending Home Sales Data Provides More Evidence of a Severe Housing Slump
The NAHB Wells Fargo Home Builder's Index Is Sinking Spectacularly
Existing Home Sales Skid to Pre-Pandemic Level, a Housing Bust is Underway
New home sales are crashing, existing home sales are crashing, and retail sales are falling. 

The average mortgage rate is now 6.23 percent and rising.

Not to worry, economic activity "appears to have" picked up. 

Yeah. tell me about it. 

The advance retail sales numbers for May were negative for the month and the Commerce Department revised April slightly lower. 

Inflation-adjusted numbers were a disaster.
Congrats to the Fed for some great wordsmithing. 

If the Fed really believes its nonsense no-recession projections and follows through on them, it is going to overshoot neutral by a mile.

This post originated at MishTalk.Com.


Most people know Fox News is the mouthpiece of the Repubss just as CNN/MSNBC are the mouthpiece for Dems.

Well CNBC is the mouthpiece for the corporate oligarchy that actually controls the central banks and big corporations.

..comments over the past few weeks that the talking heads (i.e proxies for corporate leaders) on CNBC we demanding 75 or 100 on this meeting and so here we are today with the Fed doing exactly what the proxies wanted them to do. No surprises whatsoever if you pay attention.

The corporate theory behind this is that "breaking" the economy (i.e. recession) will some how bring back the $7.25 wage slaves but that's NOT going to happen. There are too many people leaving the workforce. spoken ad nauseam about boomers but it's not just boomers. Wealthy GenXers and Millennials are calling it a quits too and quite a few people are just relocating outside the US and working remotely or elsewhere and will be reluctant to come back. Add to that the people that have health problems, women that can't find childcare and those that will take care of the aging and sickening boomers and you have massive labor depletion so WAGES WILL NOT BE GOING DOWN anytime soon with or without a recession. Sure there will be some pockets where things get rough and wages will come down but that will be few and far between.

Then there are massive pushes to unionize all over the place...Starbucks, Amazon, cities, etc all driving wages higher.

If you want to know what the Fed will do next, tune in to CNBC. Much of what you will see and hear on CNBC will be noise so you'll have to train your brain to listen in on key commentators and key interviews which will give you all the info you need because the Fed works for the corporate oligarchy and no one else. It won't hurt some of you to read the damn 10-Q reports that come out either from the big corp.

The only thing really left to do now is capitalize on the situation and profit, there is always money to be made by a prudent investor.
If the stock market craters by 50%, workers will come back to the labor force. Give it a few months and we will see stories of boomers needing to work. Not everyone can short the market to riches. The cost of labor isn't about wage slaves. It is about tech workers and middle management. TPTB need a bust in corporate profits to regain power over workers and force people back into the labor force and to the office
the fed is owned by the banks. their only concern is solvent and profitable banks. most on this site thought powell wasn't gonna jack up rates even this much. he's going much further. will he succeed in tamping inflation. doubtful in the next year or 3. does fed care if we go into a "recession". nope. the last few years were freak accidents of plague on top of a decade of zirp from GFC. like the last panic of 2008.........the FED took care of the bankers with trillions of bailouts and free money and let the rest of amerika go into actual depressions in many parts. why would this time be any different. FED works for banks. they are NOT dumb. just not truthful or on "our side".
What workers really want: raises that beat inflation


You might have heard that nowadays workers want flexibility or jobs with a sense of purpose. But with inflation on the rise, something far more basic is getting attention: Cost of living wage adjustments (COLAs), or raises that keep up with actual inflation.

Why it matters: Though wages have risen substantially over the past year, on average they're not keeping pace with inflation. Whether that's a good or a bad thing kind of depends on where you sit in the worker food chain, and on your economic outlook.
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https://www.axios.com/2022/06/15/what-workers-really-want-raises-that-beat-inflation