I hope everyone is getting some rest this weekend after a wild week. I also want to wish all my American readers a Happy Thanksgiving.
The Fed is trapped. There are no good solutions, and they will likely take the easy road. It will backfire next year in a big way.
In terms of data this week, we get Dallas Fed on Monday. Tuesday we get retail sales and PPI, both for September. We also get Case Schiller (September), Consumer Confidence (November), Pending Home Sales (October). Wednesday we get jobless claims, MBS apps and durable goods (October), Thursday is the holiday and Friday is a short day.
Let’s dig into the chaos.
If you have not yet read my latest note The Cliff, check it out.