Ammunition for a Fed Pause (John Mugarian's Dynamic Growth)

Ammunition for a Fed Pause

This morning, the PPI report was released for May, and the numbers showed that wholesale prices rose 0.2%, while the infamous core rate rose 0.3%, slightly above the expectation of a 0.2%.- Read

Another sign showing that inflation may be cooling is the metals market. Gold is finally below $600/ oz, and copper is still getting whacked.-See Prices

My best guess is we have a good news, bad news scenario. The good news is the Fed will probably pause after the June meeting. The bad news is, they may hike rates just before the pause inverting the yield curve.

Posted by John Mugarian on June 13, 2006 11:00 AM | Permalink

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