Political Fed Palaver
Catch it here
Daly is the San Francisco Fed head honcho who rode herd on the Silicon Valley Bank disaster, a “Woker” who has not had a real job most likely while she and one of her five-year Board of Directors, long time banker and Silicon Valley Bank CEO Greg Becker, did nothing because so they claimed being completely caught off guard by Federal Reserved Bank rate and bond price changes.
Recall, all the woke depositors were bailed out and the phony MSM crowd covered for them while neither were held responsible for their errors. We prefer incompetence and Treasury Secretary Janet “Go Big” Yellen yawned.
Patience for those who can recall was one of the persistent Powell memes in his fall on the transitory sword saga he suffered.
The Fed is useless, a one trick money printing pony decimating your purchasing power add infinitum.
“Fed Speakers yesterday offered no help to the Treasury Secretary by giving the impression that there is no rush to cut the Fed Funds rate any further. Mary Daly said that the Fed had to have “patience to see, not to guess”, which seems to discount the possibility of any kind of pre-emptive policy action. Daly also said that if you take a step back from all the tariff uncertainty the underlying economy is experiencing solid growth, with a strong labor market and declining inflation. That assessment might be a little bit like saying that the Dinosaurs were in really good shape if you ignore the uncertain effects of the approaching meteor.
In the land of hard data, the US economy shrank in Q1 because of a surge in imports that could be replicated in Q2 as the 90-day reprieve on China tariffs encourages importers and retailers to “reload the gun” on goods inventories. Two consecutive quarters of negative growth is the definition of a recession, but get ready for plenty of commentators to suggest that this one doesn’t really count (it wouldn’t be the first time!).
“Meanwhile, President Trump continues his dealmaking tour of the Middle East where Qatar has now reportedly agreed to purchase as many as 210 new jets from Boeing. This comes off the back of the semiconductor, energy and military hardware deals signed in Saudi Arabia, Trump’s announcement that sanctions on Syria will be lifted and his meeting with the new Syrian President, who he urged to normalize relations with Israel.
“It’s worth pointing out that while the markets were mostly focused on deals to sell more US chips and US energy, there were also announcements of new sanctions on companies facilitating the sale of Iranian oil to China and a new guidance issued by the Commerce Department that the use of Huawei’s Ascend AI chips “anywhere in the world” constituted a violation of US export controls.
“As this Daily noted yesterday, 90-day tariff reduction notwithstanding, what is happening in the Middle East and with trade more broadly should serve as a signal that geopolitical competition between the United States and China isn’t going away.” Source