Mixed signals from Fed spell DANGER

Another rate increase this month means disaster                                                                                                                                                                                                                                                                                                                                                                                                                 September 07, 2023 | [Read Online]( Dawn Report September 7, 2023 The Federal Reserve is sending mixed signals when it comes to another interest rate increase. In a new report, the Fed suggested that the economy is growing at a sustainable rate. “Most districts reported price growth slowed overall,” said the Fed in its “Beige Book” summary. It also said that “nearly all districts indicated businesses renewed their previously unfulfilled expectations that wage growth will slow broadly in the near term.” The dollar also remains strong and a new Reuters poll found that north of 80% of analysts expected the risk to their dollar outlook was on the upside. The dollar is expected to remain triumphant for at least the rest of the year. So good news right? After all, it would be nothing short of disastrous if the Fed increased interest rates again this month… Well, don’t get too celebratory. We also got this. New data out of the U.S. services sector found that businesses are paying higher prices for inputs. In other words - the pressure for inflation is still here. Notice that the Fed has not been clear about its intensions. In fact, Federal Reserve Bank of Boston President Susan Collins brought up inflation even while cautioning the central bank to move slowly. “The risk of inflation staying higher for longer must now be weighed against the risk that an overly restrictive stance of monetary policy will lead to a greater slowdown in activity than is needed to restore price stability,” she said. “This context calls for a patient and careful, but deliberate, approach to policy, allowing time to assess the effects of policy actions to date, and then acting appropriately.” Meaning they can still blow this whole thing. Markets were down yesterday, and it’s not hard to see why. Demand in China is DOWN. The European economy is STAGNATING. Oil prices are INCREASING. The American economy is being forced to carry the entire global economy… and it may not be up to this burden. And remember, despite the media celebration, inflation is still well ahead of the Federal Reserve’s 2 percent target. If you ask me, people are being way too complacent about the risk posed by the Fed. Problems that are predicted in advance tend to be avoided… So the fact that everyone seems to just be discounting the risks of another interest rate increase this year strikes me as crazy dangerous. Be ready to move fast in response to a sudden stimulus… And remember that it’s only in moments of chaos that we can bring down the gains worth remembering. I think this is going to be a fall to remember. Get What’s Yours, Jeff Bishop THE WORD ON THE STREET - India Changing Its Name – Get ready for earnest discussions about the developing market in… [Bharat](. Prime Minister Narendra Modi’s government replaced India with the Sanskrit word Baharat in invitations sent to the G20. It simply means India in Hindi. However, some in Modi’s governing BJP think that the term India is a legacy of colonialism and even “slavery.” - Apple And Arm Teaming Up – Apple [cut a deal]( with chip maker Arm that will last through 2040 and “beyond” - which I find charmingly optimistic. The deal will guarantee Apple access to the Arm architecture which will be used in iPhones and Mac chips. The disclosure comes in an updated filing with the SEC as Arm prepares to go public on the NASDAQ. - ♫ Which Side Are You On ♫ – President Joe Biden likes to brag about his supposed pro-union stance, but he may have to deal with an awkward situation soon. UAW President Shawn Fain said that a strike is “[the plan](” unless automakers come up with a new contract before the old ones expire next week. A strike by the UAW against the Big Three could cost the USA about 3% of the nation’s economic output. The union president also [said](a strike would tell President Biden that it is time to “pick a side.” After all, he needs to win Michigan. - New Crypto Plan - Don’t Work – Riot Platforms [took advantage]( of over $31 million in government help in August as the Texas power grid came under strain. It got $24.2 million in power curtailment credits from the Electric Reliability Council of Texas (ERCOT) and another $7.4 million from the demand response program. “Riot’s power strategy is a key competitive advantage,” said a company presentation. Hey, if you can get the government to pay you to not work, you’re doing something right. - Starbucks Ruling Another Blow Against Retail – High crime is shutting down retail stores around the country in marginal areas. A new court ruling is likely to make things worse. A judge [ruled](that Starbucks will have to face trial on the charge that it failed to prevent an attack on a customer in Union Square, New York City. How many companies will simply decide to flee these areas rather than take the chance? - Bill Gates Bets On Bud Light – Insert your own joke here. Bill Gates’s foundation is [buying](about $100 million in Anheuser-Busch as the company tries to recover from an ill-fated attempt to incorporate transgenders into marketing efforts. The Bill and Melinda Gates Foundation Trust purchased about 1.7 million shares last quarter. Earnings are down more than 28% as the company struggles to recover prior customers. The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our [Terms and Conditions]( for more information. Update your email preferences or unsubscribe [here]( © Dawnreport 62 Calef Hwy. #233 Lee, NH 03861, United States