Some Charts at 9 AM EDT – Disordered Economic Thinking

from Jesse’s Café Américain

[…] Gold and silver have come back sharply to the levels that they had occupied before the smackdown related to options expiration and perception modifying in preparation for the Jobs Report.

I suspect that the Fed will try to squeeze in at least one rate increase before the Presidential elections. I don’t think they can do 50 bp but a 25 bp increase might be feasible with the right wording.

June seems a bit of a stretch, but it does leave the door open for another increase should they find a favorable set of data to smooth their way.

In a very real sense the slight movement of interest rates do not matter all that much at this point to the real economy. They are a blunt instrument, more symbolic than effective. But they are almost hypersensitive to unbalanced financial markets made tipsy by excess.

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