New Home Sales Plunge in May

Time to add the Feds preferred index, the PCE/Core PCE:

Fed's favored inflation gauge shows consumer prices ticked slightly higher in May

The feds are keeping rates stubbornly high, totally political in my opinion.

Tariffs have not caused inflation and will not cause inflation. In the meantime, the Feds are overseeing a contraction in the economy and a collapse of the housing market. With friends like the Fed, who needs enemies.

 

LOL! The federal funds rate sends the signal for where rates are desired, up, down, or flat. Mortgages, autos, credit cards, and index loans to just name a few are affected by decisions the feds make. You are lacking if you don't have this very basic understanding. Sometimes markets go a different way than the feds, but it's rare when they do so.

 

The feds had plans for 3 to 4 rate cuts in 2025 with numbers no higher than this. I think rates should be 1% lower right now. All Powell can blather on about is tariffs which have not caused inflation. Even Obama's economic adviser, Austin Goolsby, who is president of the federal reserve bank of Chicago disagrees with Powell saying tariffs haven't caused inflation and aren't inflationary. There have also been several other fed reserve bank presidents who have stated they want to start rate cuts in July rather than a maybe at the end of the year.

 

The fed has zero consistency. To say Powell has greatly damaged the role of the fed chairman over his democrat leanings is an understatement.

I'd go ahead and announce Powell's replacement to start preparing for Powell leaving along with fed reserve bank presidents and the 100s of economists who are most all democrat donors who hate Trump. It has become an unbearable and wrong group think that has to go. May 2026 can't get here soon enough.