Category: "US Economy"

With all the negativity going on between Republicans, Democrats, the mainstream media, and the Trump Administration, it's easy to lose perspective on what is going on in the economy. One of the most accurate predictors of Bull/Bear economic cycles are corporate bond yields. See what the Moody's BAA Corporate Bond Yield chart is signaling for the economy.

Tax reform legislation can now move forward after Republicans scrapped plans for a Border Adjustment Tax (BAT) on July 27, 2017. Powerful retail lobbying groups have announced that they will now get behind tax cuts. The debate over a BAT was holding up President Trump's tax cuts agenda. The big issue now though is that without a BAT, how do big permanent tax cuts get paid for?

The FOMC announcement had a big negative impact on the US dollar on July 26, 2017. It looks like the Fed is dragging its feet. Just a few months ago, the Fed made it seem like a September rate hike was on the table. The Fed has backed away from September for a possible rate hike and looks instead to be tinkering with the $4.5 trillion balance sheet and the start of QT.

Janet Yellen is sticking by her guns that the US economy is strong enough to raise rates and reduce the Fed's balance sheet at the same time.