As June looms, The Fed - having dropped 'some' of its global event risk language in the latest statement - is now desperate for an excuse to not hike rates (or face a total loss of credibility). Judging by Fed's Kaplan, they just found it...
Which is a problem as 'Brexit' just moved into the lead among YouGov polls.
Either Brexit or market turmoil or a terrible jobs number...
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
The banquet of consequences is about to be served.
If we step back and look at what's happened since the Global Financial Crisis of 2008-09, it's easy to see that the global leadership has chosen to do more of what's failed spectacularly.
Despite surging stock prices in April, UMich's final Consumer Sentiment print slipped to 89.0 (from 89.7 prelim and 91.0 previous) notably below expectations and the lowest since September 2015. Under the covers though, it was "hope" that really plunged, as Consumer expectations dropped to 77.0 - the lowest since September 2014. However, worst of all for The Fed is that medium-term inflation expectations tumbled back to 2.5% record lows.
Hope is plunging...to 18 month lows
In one of the least surprising highlights from the ongoing earnings season, yesterday we reported that as oil continues to rise, US shale companies are starting to resume mothballed production.
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