Wholesale Inventories, EIA, Treasury, FOMC Statement
$21 Billion 3 year note auction, high yield 4.995, indirect bidders 24.4% vs prior average 35.6%. Meanwhile, inventories at U.S. wholesalers increased by 0.2% in March, while sales climbed 0.7%.
The Labor Dept issued a correction to recently released compensation and labor cost data. Compensation per hour in manufacturing +2.4% annualized, rather than +1.5%. Real compensation (adjusted for inflation) +0.3% annualized, rather than -0.6%. Unit labor costs -1.7% annualized, rather than -2.6%.
Treasury budget for the fiscal year so far, the deficit is $184.1 billion, down 22% from the $236.9 billion at this time last year.
EIA inventory crude +300K barrels, at its highest level since 1998. Gasoline +2.4M barrels, Distillates +200K barrels. Perhaps people are driving slower and less often. Oil futures rose +1.5% and gasoline +5.5% on the news.
The Fed raised 25bps for the 16th consecutive time bringing Fed Funds to 5%.
Benny and the Feds statement: "possible increases in resource utilization, in combination with the elevated prices of energy and other commodities, have the potential to add to inflation pressures."
Implying there is little economic slack and energy stagflation could increase inflationary pressure.
"further policy firming may yet be needed to address inflation risks but emphasizes that the extent and timing of any such firming will depend importantly on the evolution of the economic outlook as implied by incoming information."
Leaving no doubt that the state of the economy as implied by the data will determine when and how much the Fed will raise.
Full FOMC Statement
The Labor Dept issued a correction to recently released compensation and labor cost data. Compensation per hour in manufacturing +2.4% annualized, rather than +1.5%. Real compensation (adjusted for inflation) +0.3% annualized, rather than -0.6%. Unit labor costs -1.7% annualized, rather than -2.6%.
Treasury budget for the fiscal year so far, the deficit is $184.1 billion, down 22% from the $236.9 billion at this time last year.
EIA inventory crude +300K barrels, at its highest level since 1998. Gasoline +2.4M barrels, Distillates +200K barrels. Perhaps people are driving slower and less often. Oil futures rose +1.5% and gasoline +5.5% on the news.
The Fed raised 25bps for the 16th consecutive time bringing Fed Funds to 5%.
Benny and the Feds statement: "possible increases in resource utilization, in combination with the elevated prices of energy and other commodities, have the potential to add to inflation pressures."
Implying there is little economic slack and energy stagflation could increase inflationary pressure.
"further policy firming may yet be needed to address inflation risks but emphasizes that the extent and timing of any such firming will depend importantly on the evolution of the economic outlook as implied by incoming information."
Leaving no doubt that the state of the economy as implied by the data will determine when and how much the Fed will raise.
Full FOMC Statement
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