Athen Apaquette

Monday the Producer Price Index (PPI) for May was announced as unchanged.

The Wednesday the Consumer Price Index (CPI) was announced as lower by 0.1%, and retail sales were down 0.3% (have you been reading about all the department stores closing? Brick and mortar stores losing against the Net but then again, Amazon is buying Wholefoods, while 22 stores are on the brink of bankruptcy).

On Wednesday the Federal Reserve announced that they are raising the prime rate 0.25% and that they would start reducing their balance sheet later this year. Since this was expected the markets just yawned at the news.

They also made clear that they are not concerned with this recent weak data a drop like this nor a spike would not have changed their opinion. The only dissenting vote to raising the rate was Neel Kashkari (remember him? California gubernatorial candidate) President the Minnesota Fed.

Thursday it was announced that housing started were DOWN 5.5% and building permits dropped 4.9%. Which should have good news for rates but they barely moved the needle. So rates are the same… too much wait and see and not enough “wow” news.