The FOMC leaves rates unchanged

Good Day... And a Tub Thumpin' Thursday to one and all! Boy, did I ever step in a pile of dog do-do yesterday... I went to be on Tuesday night right after the Brewers went ahead 3-2, and thought they had won... I never even checked the score the next morning, so I said they had won the Championship... I was WRONG! Apologies to the Rays and their fans... I didn't get much sleep last night, and then turned the alarm off this morning because I had just gotten back to sleep... Thus the very lateness of the Pfennig this morning... Steeler's Wheel greets me this morning with a very appropriate song title: Get It Right The Next Time... because I was dead wrong yesterday...

Well, the FOMC left rates unchanged yesterday, which surprised many who thought it was go - time... FOMC head honcho, Kevin Warsh had this to say about the pass... "The FOMC wanted more time to view the data that will come.." Well, isn't that so sweet? The Kevin Warsh sounded like former FOMC head honcho, Jerome Powell... Didn't Powell give this excuse time and again when not raising interest rates... ? Why yes, he did... But some thought it was too close to the mid-term elections and that if the FOMC cut rates then he would be accused of being Political..

Hey, Yellen did it, it's been done before... I'm just saying,,.

But the dollar didn't get sold too much, as the BBDXY lost 1 index point to 1,224... But it stopped the dollars move lower, when they left the door open for future rate hikes, But... what happens if the economic data prints are bad between now and 12/9... Does he give up his fight to stop inflation? This is where Fed leaders get their credence or lose it... If he keeps his word that he's going to fight inflation Then what happened to his waiting for good data... and if he waits again, then what happened to his inflation fight?  Caught between a rock and hard place is what my dad would have said.... 

Gold got back on the rally horse when buyers of physical Gold and ETFs started to buy by the bushelful... Gold gained $18 yesterday, while Silver lost 12-cents... Gold closed the day at $4,068 and Silver closed the day at $53.34

The price Oil Saw some buying and it closed the day at $102.70, and the 10-year saw some buying and the yield fell to 4.98%

In the overnight markets last night...a great big nothing burger was last night, as the foreign markets were not there apparently. The dollar remained at 1,224, the currencies look as though they woke up in the same clothes as yesterday. The price of Oil remained with a $100​ handle... and so on... the night trading was a big nothing burger... except for.... 

Gold got knocked for a loop when the data printed this morning,,, If I had woken up at normal times, I would have said that Gold did nothing overnight... But I didn't and woke up hours later this devastation in Gold... Gold is down $38 to start the day, and I just sit here and shake my head with disgust... 

Silver was taken to the woodshed too... Silver is down $1.49 to start the day and trades with a $52 handle... this is getting serious folks...

The price of Oil remained with a $100 handle, and the yield on the 10-year is 4.98% to start the day...

The Bank of Canada hike rates 25 Basis Points and said that inflation was the reason for the rate hike... But in reality, it's a rate hike to match that of the U.S. Fed/ Cabal/ Cartel's rate hike last month... I'm just saying...

So, yesterday, Gold gained on the FOMC non movement in rates, while Silver fell... What is a mother to do? The SPTs increased their total short contracts in Silver in the last month, and it tells, doesn't it? Days when Gold is able to get past short selling while Silver can't... The STPs have done their job of getting the short timers out of Silver... I'll give them that, but otherwise, I'd say that they've not a done a thing except they have lined their pockets more... who knows when this will end? But it will, I'd bet my bottom dollar on it ending ssomeday... I might not be here to enjoy that day, it's coming... 

Bill Bonner in his daily newsletter yesterday was going on about how much money these AI firms are losing... Last year Claude lost $80 million,,, The same scenario was playing out before our eyes in the late 90's with the internet companies... They issued stock and their stocks would go through the roof, before they made a dime... I'm just saying... 

And how did the internet improve our lives? We still go to work every day and we make less than we did in than in 1999... Think about that folks... 

OK, The currencies are remaining in their respective sick beds... Except, here he goes again with lauding the Chinese renminbi, the Chinese renminbi.. The Chinese are winning the AI war with the U.S. and the renminbi shows that in its trading... I don't know how they do it, but them seem to beat us at everything they put their minds to ... 

The U.S. Data Cupboard today was busy this morning... first, we saw the color of the last week's Initial Weekly Jobless Claims, Then we'll see Personal Income and Spending... We, as a country are sill spending more than we bring in, and this report showed that once again... And finally, the FOMC's favorite inflation report.. The PCE... once again, inflation moved higher to 3.6% y-t-d... I would look for a rate hike for sure on 12/9 ... I'm just saying...

To recap... The FOMC left rates unchanged and didn't hike them as thought... The dollar got sold but not by much... The 10-year saw more buyers and the yield on the bond dropped to below 5%... And it was a day -o- Data and Gold /Silver got knocked for a loop... 

For What It's Worth... Well, even with the 10-year's yield falling to 4.98% The yield has really risen, and that's because of a bond crisis that's brewing... This article is about the bond crisis that's brewing.

Or here's your snippet: " Markets are being horribly complacent over the inflationary consequences of the Middle East crisis. This is not unusual. Time and again we have seen markets and the authorities underestimate the consequences of these events. The most recent example was the inflation following Russia’s special military operation against Ukraine, when the Fed was reluctantly forced to increase its funds rate leading to a number of regional banks having to be rescued.'

This reluctance to embrace higher rates and bond yields has a long history, from usuary laws to Keynes’s General Theory to Regulation Q. Suppressing interest rates is the primary tool of central bank economic management. And over time it always leads to an unexpected crisis.

The crisis in the Middle East is extremely serious. Any observer worth his salt can anticipate the impact on global business, which faces a slump. At the same time, consumers face higher energy, logistics, and transportation costs. A vicious El Niño following a European summer drought is driving up food prices. The destructive synergy of these events combining is widely ignored. But just as interest rates were forced higher in the wake of Russia’s SMO, here we go again."

Chuck Again...This article by Alasdair McCleod is very long, so you'll have to go to the link to read it all... sorry... 

Market Prices 10/29/2026: American Style: A$ .7026, kiwi .5618, C$ .7145, euro 1.1145, sterling 1.3384, Swiss $1.2088, European Style: rand 16.6333. Krone 9.2679, SEK 9.8598, forint 327.93, zloty 3.9387,  koruna 21.8167, RUB 80.71, yen 157.90, sing 1.2809, HKD 7.8466, INR 95.25, China 6.6624, peso 18.78, BRL 5.3821, BBDXY 1,224, Dollar Index 102.22, Oil $100.91, 10-year 4.98%, Silver $52.66, Platinum $1,485.00, Palladium $1,029.00,  Copper $6.59, and Gold... $4,030

That's it for today and this week, Next week will be election day, not a full election, just partial and other amendments to be voted on... My beloved Mizzou Tigers get back on the gridiron on Saturday VS Arkansas.. I've already congratulated the Brewers for their World Series win... And Congratulations to Willam Contreas for winning the MVP of the series.. We, as in the Cardinals used to have his older brother, but not anymore. I still put a cap on when I left the house yesterday... and probably will for some time... I went to my grandson Braden's swimming conference last night.... The place was packed! He's becoming a very strong swimmer! OK... Blind Melon takes us to the finish line today with their song: No Rain....I hope you have a Tub Thumpin' Thursday today, and Please Be Good To Yourself!