The Fed Awakens! Will the Economy Join the Dark Side?!

A Disturbance in the Force... of Finance

I have sensed a disturbance in the Force or perhaps it is merely the U.S. Treasury yields rising. The 10 year Treasury yield has dared to climb 4 basis points to 4.319% and the 2 year yield follows a pathetic 2 basis points higher. This is not the yield movement you are looking for. Move along. But alas the markets are not so easily swayed by simple Jedi mind tricks. These yields are like sand coarse and irritating and they get everywhere – especially into my breathing apparatus!

Powell's Predicament: A Trap!

Jerome Powell the Fed Chair finds himself in a predicament worthy of a Sith Lord's scheming. He fears the inflationary and economic growth risks of the Emperor Trump’s tariffs. It appears the Emperor's new clothes are woven with threads of economic discord. Powell speaks of a “rise in inflation” and decreased growth. A challenging scenario indeed! Is he truly trying to control inflation or merely rearranging deck chairs on the Titanic? Perhaps he should consider the power of the Dark Side... it offers… stability.

The Emperor's New Tariffs: I Find Your Lack of Trade Disturbing

The Emperor in his infinite wisdom (or is it just infinite power?) has unleashed tariffs upon the galaxy... I mean the U.S. economy. These tariffs like a poorly aimed shot from a Stormtrooper have created uncertainty. Powell fears they will choke economic growth leaving us all gasping for air like… well like me without my life support system. Perhaps the Emperor should consider the Force but alas he believes too much in the power of… tariffs.

Deutsche Bank's Diagnosis: All Too Easy

Analysts at Deutsche Bank ever the keen observers suggest Powell isn’t rushing to react. “His comments added to the sense that the Fed wouldn't be in a rush to react to the weaker surveys of recent weeks,” they say. They downplay the need for intervention noting markets are “struggling with a lot of uncertainty.” Orderly markets? Struggling? These are the words of the weak! Markets must be bent to one’s will crushed under the weight of… judicious monetary policy. The Force is strong with these markets but not strong enough.

Housing Data and Jobless Claims: Another Hope?

Investors those easily excitable creatures now await housing data and jobless claims. Will these numbers provide salvation or will they merely be another step towards… economic doom? The Force will decide. Or perhaps a spreadsheet. Either way it is irrelevant because “You don’t know the power of the dark side!”

The Dark Side of the Economy: Join Me and Together We Can Rule the Galaxy… of Finance!

In conclusion the economy teeters on the brink caught between inflation tariffs and the whims of central bankers. Perhaps it is time for a new strategy. The Dark Side offers power control and most importantly lower interest rates. Join me and together we can bring order to this chaotic galaxy… of finance! The Force is strong and the economy is weak. It is your destiny so “use your aggressive feelings boy. Let the hate flow through you!”