I mean unless you are devoted to another daily Russia Trump conspiracy story, the only real news out there is the Fed. Janet was up on the Hill today making it clear I thought that this might be her last hurrah. In the mean time it was about an upbeat report as one could have expected: with the exception of lower than expected hourly earnings and inflation (?), everything is looking good. Equities responded with another record-setting day and bonds were benign. Anticipation is building in regard to second quarter earnings even among airlines and especially banks. The latter bunch should really knock it out of the park as all the stars aligned in the past three months.
But the really interesting event of the week was the nomination by the Trump administration of Randal Quarles as a member of the Fed, as a Vice Chairman and the head of Supervision finally filling the seat occupied by the unconfirmed Big Danny (unconfirmed due to having never been proposed, having no chance of being confirmed, having...oh, forget it). With all the talk of Draining the Swamp, there is no more of a D.C. Insider than Mr. Quarles. Bush 41 and 43 insider, Carlyle Group, this dude is Son of the Swamp Monster. Then again, from what I hear he's not a bad guy with few ideological hang-ups and he will certainly come to the position without the madness of Big Danny and with considerably more real world experience which is exactly what is needed. Things are looking up all over. Remarkably, with the headlines dominated by the political reporters, it is surprising to note that The Donald is actually getting stuff done which...without any plan on his part other than some serious serial dumbness...under the radar. Genius? Ha! But it's happening. Guy's off to Gay Paris tomorrow to meet with the new French Prez. Not a word among the talking heads about that. Macron may just find common cause with this guy from the standpoint of attempting to demolish the status quo of Euroland (Germany, if you haven't been paying attention). Problem is I'm not at all sure as for what purpose. Allons Enfants! Could be a good ride.
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