We have moved into June with May going out with a bang on Friday.
The personal consumption expenditure numbers were released Friday and it appeared to indicate that inflation was not coming down and basically stuck in place.
You would think that would put a stake in the heart of those pining for a rate cut as inflation is not going down.
Possibly they gave up wishing and decided to get on with things as the various indexes and averages climbed significantly.
We will get a jobs report this week that will get the attention of the last remaining hopes for a rate cut.
It appears the Fed will take the summer off and let this all play out, which I don’t see as a bad choice. We are far too deep into an
cycle for the Fed to be the focus of the economy.
While many will contend that a Fed rate above 5% is not what we need, it doesn’t appear to be affecting growth, employment or wages.
Of most importance, earnings continue to progress, though not at the previous rate.
This leaves all the attention on AI and who will be the winners and losers. I would say that while most point to jobs that imitate a robot such as the service sector.
I would be concerned that the next level could be more impacted.Why would you need a lawyer to construct a will or to write a contract?
After taking your basic blood work and other vitals tests, you might hear from a AI bot about your next course of action.
It could significantly assist those of us who find getting medical care now that we are on Medicare becoming more difficult.
These are some possibilities for a start, but it is not just eliminating starter jobs.
Just another cycle for all of us to adapt to and hopefully benefit from. My great concern is that the amount of fraud unleashed on the public by the internet will pale in comparison to AI.
The interesting factor in all of this technological change will be who or what we go to for any validation. It won’t be the government.
We already saw what following the science provided.
The conspiracy theorists will have a field day.
My last hopes of actually speaking to someone about an issue over the phone is quickly going out the window.
Security of all this data and what it produces has to be an unbelievable task and, of course, an opportunity.
Beyond our concerns over technology and what it will bring, we have not escaped the reality of war.
The fight in Gaza goes on, Russia is accelerating its attacks with aid from Iran and North Korea and tensions grow around Taiwan.
I am amazed at times the ability of the U.S. economy to persevere and expand with all the other factors being dealt and at the same time.
For all its myriad of faults, free market economy is a wonder to behold. With a bit of ethical conduct, it would be beyond reproach, but you always have people involved, which brings greed.
I would say looking back on the previous month and the rest of 2024, we have made progress.
Nothing is perfect and we need to watch the rise in commodities.
Copper and gold have climbed significantly and oil is being supported by OPEC.
This will not help our fight against inflation.
The cost of living is not rising fast, but it reflects a significant cost to consumers over a couple of years ago.
Housing is harder to come by and costs more.
Jobs are available, but the rise in wages is not keeping up with increasing expenses.
Many see nothing, but blue skies and rainbows. I have been at this far too long for that.
Always worth being prepared for a change in direction.
