Bad News is Good News for Jerome Powell

                                                           

Durable goods orders came in below expectations on Tuesday just as new home sales did on Monday.   View in browser   July 27, 2021   Today's Top Stories From the Breitbart News Desk Durable goods orders came in below expectations on Tuesday just as new home sales did on Monday. These reports are being read by many on Wall Street as signals that growth may have peaked in the second quarter and that the economy is now cooling off in the absence of another round of stimulus checks. That would be a relief to Jerome Powell and his comrades at the Federal Reserve. They have unilaterally decided to transform their statutory duty to seek maximum employment into a quest for racial and gender equity, a novel goal for a central bank. In their view, they need to keep monetary policy accommodative for longer than would have been the practice in the past in order to bring this about. Much higher than expected growth and inflation, however, was casting the viability of that plan into doubt. The Q2 peak growth thesis can now combine with the increasing alarm over rising covid variant infections that led the CDC to announce a new mask indoor advisory that applies even to fully vaccinated people. That should buy Powell plenty of breathing room to promise that we are nowhere near a taper of the Fed's bond purchases, much less closer to actually raising interest rates. As much as we hate to spoil the party, the Fed will be playing a dangerous game if it takes the slowdown in new home sales and durable goods as evidence that the inflation danger is passing. There's good reason to suspect that home sales are slowing because they are so expensive and hard to find. The same goes for computers and autos. Keeping rates low is not going to do much to ameliorate the shortages but could pump up demand enough to keep prices rising. – Alex Marlow & John Carney Breitbart News Network     TOP STORY   Transitory? Record Breaking Inflation Tears Through Mid-Atlantic Manufacturers for Fourth Straight Month Manufacturing businesses across the central Atlantic region in the U.S. are seeing record-shattering inflation, data from a survey from the Federal Reserve Bank of Richmond showed Tuesday. The Fifth District Survey of Manufacturing Activity's gauge of prices paid for materials and prices charged for products both moved dramatically higher in July, the fourth straight month of record-high readings for the price increases across the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia. Prices paid by manufacturers rose at an annualized pace of over 11 percent, the fastest in records going back to 1993. In June, manufacturers reported prices paid rising 8.57 percent. [Click here for more]   IN OTHER STORIES... Establishment Media Panic: Joe Biden's Infrastructure Deal Crumbling The establishment media sounded the alarm Monday that President Joe Biden's infrastructure designs are crumbling. Despite Biden's optimism that two infrastructure proposals worth trillions of dollars will be signed into law, the Washington Post, Politico, and the New York Times have sounded the alarm on the possibility of... [Click here for more]   Flight from the Cities: Home Prices Soaring at Fastest Pace on Record Prices for U.S. homes rose at a new record pace in May, as Americans battled for homes amid a historic shortage. The S&P CoreLogic Case-Shiller National Home Price Index soared 16.6 percent in the year that ended in May, the highest annual rate of price growth since... [Click here for more]   Biden's Broken Economy: Cars and Computers Orders Slump as Shortages Drag Durable Goods Orders and shipments of computers and autos fell in June as consumers, dealers, and manufacturers continue to struggle with shortages in parts and labor, as well as soaring shipping and materials costs. New orders for motor vehicles fell 0.3 percent in June, after rising 2.0 percent in May, data from the Commerce Department said Tuesday. Shipments of cars and trucks fell... [Click here for more] FOLLOW

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