Don’t Bet on a Rate Cut

There is a lot of buzz and speculation n the news and the market place about a mortgage industry in disarray and pending doom for the economy overall.  This in turn leads to speculation that the Fed will go into an easing cycle sooner rather than later.  Don’t put your money down in Vegas just yet!  The Fed has been clear in their recent comments that inflation is the number one target and until the core rate is below the 2.00% threshold do not count on any easing of short term rates.

Tomorrow at 8:00 AM ET we will get the latest up to date read on inflation in the form of the PCE (Personal Consumption Expenditure Index.  Estimates put the expected number at 2.3%. Anything higher will hurt the market and cause a sell off on bonds, anything lower would bore well for the market and cause a dip (maybe only brief) in interest rates.  Hold onto your hats because tomorrow could be a wild ride with the PCE, Personal Spending, Personal Income, University of Michigan Consumer Sentiment Index, and the Chicago PMI (Purchasing Managers Index) all slated for release.

On the lighter side of the news, did you know:

The five most stolen items in a drugstore are batteries, cosmetics, film, sunglasses, and, get this, Preparation H. Apparently people are just too embarrassed to purchase the last item. And, just in case you are curious, one of Preparation H’s main ingredient is shark liver oil. The oil not only helps shrink hemorrhoids, but will shrink any tissue. As a result, many older women in Florida use the stuff to help reduce the appearance of wrinkles!

Have a great day and check in tomorrow to see where the interest rate wheel of fortune lands.