The Fed stepped up and gave the Street what it wanted in a quarter-point rate cut.
There are expectations that there will be two more quarter-point rate cuts before the end of the year.
It is argued that the economy is stalling as evidenced by the drop in employment.
I, for one, am not a conspiracy theorist, but I do not trust the data.
I am concerned that the drop is due to the current immigration crackdown and the growth in AI.
I am not convinced that we are losing productivity as GDP continues to show strength.
I agree that the Fed needs to carefully follow the data assuming it is even correct. Sort of like being told to follow the science.
What I do know is that the markets are up over 13% for the year and that includes the drop in April for Liberation Day.
I just don’t see something that can derail the market in the short term.
I’m not even saying what 2026 will bring.
But then again, that is why they call them Black Swan events that come unexpected.
What I do know is the government debt is not being handled
as of yet.
The real problem is that we argue about 20% or less, and the remaining portion is untouchable.
We have less than 10 years to fix Social Security.
If we don’t, it will self correct by cutting benefits by 25%.
Congress has no stomach to deal with entitlements.
One side calls for taxing the rich and the other wants to cut spending.
Neither will do the job.
The problem lies in that politicians only act after the problem has blown up.
We will go through a government shutdown at the beginning of the next month.
One side wants to claw back cuts and the other won’t spend more for the programs that they cut earlier.
This can start to concern those outside our borders as to the strength of the dollar.
Speaking of troubled waters, I have watched the recent events with Intel.
First, the government invests, and then Nvidia steps up.
Maybe that is what is necessary to bring the chip foundries back to the US. While I have owned Taiwan Semi for years, I am concerned that China will take the island.
I have no real idea what that will mean for the chip maker.
It cannot be good for the U.S.
As a country, we have poured billions into green energy and other national products that are the flavor of the day.
In an AI world, I would think having chips produced in the U.S. would be prudent.
Not a big believer in Big Government, but here we are.
I am glad to see how the private sector and government has started to rethink its attitude on nuclear energy.
I am aware of all the past history and the time and cost required.
There are newer, smaller options on the table.
We are at a point with demand for electricity rising infinitely higher that all options need to be on the table.
Not sure the government should decide which is the best. Big believer in free enterprise and freedom of choice.
Speaking of choice, I have made several life changes during this year for mostly health reasons.
Sort of way too late in the game, but did make it happen.
One of my big concerns in this country is that we have substituted want for need. We spend so much on things of little or no long term use. Being a disposable society is costly.
Not saying we should eliminate everything but evaluating what we consume makes sense.
I have to concede that my parents were Depression babies so nothing was wasted.
I probably see things with an inherited different vision.