Adding new ingredients to the economic blender.
The performance of United States economy in 2023 has been as unexpected as a lentil-avocado-cinnamon smoothie – a tasty surprise. Last week, economic data suggested the Federal Reserve may need to do more to slow the economy. The consumer price index showed inflation edging higher, wholesale inflation was higher than expected (largely due to higher energy prices), and retail sales were healthy.
Stronger-than-expected economic data inspired market optimism that the Federal Reserve will bring inflation down without a recession. However, new ingredients are being added to the economic mix that could prove less palatable. These include:
It's possible these events will result in increased market volatility in coming weeks.
Last week, major U.S. stock indices moved lower, according to Barron’s, and yields on longer maturities of Treasuries.
AND THE WINNERS ARE…The 33rd First Annual Ig Nobel Prize ceremony honored 10 winners for conducting research into improbable ideas that make people laugh and, also, make them think. The awards “celebrate the unusual, honor the imaginative – and spur people’s interest in science, medicine, and technology.” The official mascot of the Ig Nobel Prize is “The Stinker,” a graphic of The Thinker toppled onto its back. This year, the winning research included:
The winners received Zimbabwean 10-trillion-dollar notes. (Relics from a period of hyperinflation in Zimbabwe.) Ig Nobel recipients’ 24/7 lectures, which include a complete technical description delivered in 24 seconds and a concise summary that anyone can understand in just seven words, are available on the Improbable Research website.
Weekly Focus – Think About It
“If we knew what it was we were doing, it would not be called research, would it?”
—Albert Einstein, scientist
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https://www.bloomberg.com/opinion/articles/2023-09-15/lehman-brothers-china-and-europe-feel-the-fallout-more-than-us (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2023/09-18-23_Bloomberg_Happy%20Lehman%20Day%20to%20All%20Who%20Celebrate_2.pdf)
https://www.barrons.com/articles/uaw-strike-us-economy-recession-dfbe4e15?mod=hp_LEAD_1_B_2 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2023/09-18-23_Barrons_Actors%2c%20UPS%20and%20Now%20the%20UAW_5.pdf)
https://www.barrons.com/market-data?mod=BOL_TOPNAV (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2023/09-18-23_Barrons_Data_7.pdf)