CNBC is reporting that the Fed is concerned about inflation be rekindled and based on most of the economic data coming out lately, it sure seems like people are continuing to spend across the economy.
“With inflation still well above the Committee’s longer-run goal and the labor market remaining tight, most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy,” the meeting summary stated.
Source: CNBC.com
The latest State Job Opening and Labor Turnover report from the BLS confirms that a 525% increase in the Fed funds rate has had minimal impact on the labor market:
Layoffs and Discharges In June, layoffs and discharges rates decreased in 2 states and were little changed in 48 states and the District of Columbia. The decreases in layoffs and discharges rates occurred in Mississippi (-0.6 percentage point) and Georgia (-0.5 point). Over the month, the national layoffs and discharges rate was unchanged. (See table 5.) The number of layoffs and discharges decreased in 2 states, increased in 1 state, and was little changed in 47 states and the District of Columbia in June. The decreases in the layoffs and discharges levels occurred in Georgia (-22,000) and Mississippi (-7,000). The increase occurred in Arizona (+11,000). Nationally, the number of layoffs and discharges was little changed. (See table 5.)
Source: BLS.gov
The best investment moving forward will continue to be US Treasury T-Bills and with Fitch potentially issuing downgrades on credit ratings for various banks, we’ll stay away from bank CDs and other bank deposits in the meantime.
Stay tuned, stay profitable and stay solvent…