Update on Team Biden's Track Record - Mar 10

[dan_s]

The consumer price index jumped 7.9% from a year earlier, a fresh 40 year high, following a 7.5% annual gain in January. The drivers of the increase were gasoline, food and housing costs, with inflation poised to rise even further following Russia’s invasion of Ukraine. Market participants are already bracing for even higher CPI rates next month as these figures represent conditions before the invasion.

Weekly jobless claims were 10K higher than expected, but have remained in its recent range.

U.S. equities have dropped 1.25% to 1.50% and Treasury yields are up about 3bps. The 10-yr Treasury yield is almost back at 2%.

Russia’s isolation from global economic links has disrupted commodity markets, sparking fears of a further slowdown in global growth and a surge in inflation already boosted by Covid-related supply hiccups. Russia is a major producer of metals — it accounts for 6-8% of nickel and 6% of aluminum production, and has a 13% share in world steel trade. Nickel is an input into the production of stainless steel and batteries. Ukraine is one of the main world exporters of grains (corn and wheat) as well as vegetable oils. In 2021 Ukraine was the second largest supplier of grains for the European Union (EU) and a large food supplier for low and middle-income countries in Asia and Africa

The European Central Bank unexpectedly accelerated its wind-down of monetary stimulus, signaling it’s more concerned about record inflation than weaker economic growth as Russia’s invasion of Ukraine threatens to propel prices even higher. ECB officials pledged to slow bond buying from the start of May, and said they could halt the program as soon as the third quarter. They tried to temper that by making a subsequent interest-rate hike less automatic.

Yesterday, the U.S. House of Representatives passed a $1.5 trillion omnibus spending bill that includes $13.6 billion in aid for Ukraine and European allies, and would fund the federal government through to Sept. 30. Democratic lawmakers scrapped the bill’s initial $15.6 billion COVID-19 aid provision.

[dan_s]

Trump:
"We have the oil under our feet, liquid gold. But instead, we are thinking of buying oil from Venezuela, Iran, and others who do not exactly love America."

"Joe Biden is letting the radical climate extremists run our country, while the world burns. Everyone is suffering because our leaders have no idea what they are doing."

Trump added: "Bring back American energy independence and American dominance."