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In another 35 bigger cities, condo prices dropped by 8-14%.
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But opaque foreign financial centers pile on Treasuries, often held by US companies and hedge funds.
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Sales were bad in all regions.
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This was a hawkish meeting, with a unanimous vote for a hike, and more hikes indicated.
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Not even sky-high gasoline prices could dent their spending on bars & restaurants, ecommerce, cannabis stores, etc.
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The function of yield is to create demand.
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The interplay of risk and inflation.
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But 5% was considered normal to low in the decades before the Fed’s financial repression kicked off in 2008.
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Spooked by inflation, deficits, hocus-pocus shows, competition from the AI debt binge, and getting casually thrown under the bus by Trump’s free-money promise.
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Core services CPI +4.0% annualized, Core CPI +3.5% annualized, all-items CPI +4.9% annualized in August from July.
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Lots of Bad Stuff all at once, topped off by Trump’s $1.35 Trillion Free-Money Promise, $5,000 for every adult American, at the worst possible time.
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The average weekly mortgage rate, at 6.76%, is not high historically.
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This kind of inflation is nothing to be trifled with: In services +4.5%; in goods without energy +5.0%; in energy +24%; overall +5.4%; year-over-year.
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The hocus-pocus show falls flat.
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Americans hate, hate, hate high gas prices, but they’re less sensitive to them than auto dealers ironically expected.
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The government is already busy fighting over what to do with the $31 billion in profits on its foreign exchange interventions last fiscal year.
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The economy did fine with a 10-year yield of 5-8%, including in the 1990s, amid a tight labor market and lots of economic growth.
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The job creation machine is running backwards in some industries and forward in others.
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The Fed can focus on getting its messy inflation-house in order.
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That looming 7% mortgage rate...