Markets: Inflation, and how the Fed will respond, are driving Markets lower. It continues.
S&P roller coaster last week: Up, down significantly, up, down, and down.
Fed Balance Sheet: $8.83 trillion.
Inflation #1: The Consumer Price Index (CPI) gives us a read on consumer inflation. It dropped from 8.5% down to 8.3% on Tuesday morning. You would think that would be a good thing. But the expectation was the index would drop to 8.1% and hopes were it would go below 8%. Nada. Markets sold off is a significant way.
Inflation #2: The Producer Price Index (PPI) gives us a read on wholesale inflation. It dropped from 9.8% down to 8.7%, as expected.
Jobless claims: The weekly number came in at 213,000. The four-week average is 224,000.
Radio: You can normally hear Bill and me discuss Markets on many Friday mornings at 6:38am, 7:38am, and 8:38am 1100 AM, WTAM.
Focus of the week: All eyes will be on the Federal Reserve Wednesday afternoon. The topic: how will they battle Inflation at this meeting? Just how much will they raise their interest rate? And what will Jerome Powell say in his press conference?
Economic calendar: Housing starts (Tue); Fed meeting statement, the Fed Chair press conference, existing home sales (Wed); and jobless claims (Thu).