Week of August 1, 2022 Commentary:
Regarding the economy, “If it walks like a duck, and talks like a duck, it’s a duck!” Unlike past recessions, the labor shortage in the US suggests few layoffs and hence, this could be a “Daffy Duck” recession ‐ few economic consequences for consumers. The Fed raised interest rates another 75 basis points last week and commodities have weakened as markets adjust to a more benign inflation outlook. Chuck Schumer and Joe Manchin wrestled in “Porky’s” pen and emerged with a tax, spend, and light touch energy regulation bill that may prove fruitful for energy security.
Bob Bilkie, CFA