Jerome Powell declared a rate increase of 75 basis points today. The market reacted immediately down and then went up and then went really down at the end of the day, dropping more than 522 points. But the market was expecting either a 75- or 100-basis-point drop. It was never going to be 50. So why such a bad reaction? Calah says maybe dead cat bounce. I personally think overreaction and selling leading to selling. I expect it to tick up some tomorrow or Friday. Rosh Hashanah starts Sunday night, so a few traders will be out of the market Monday and Tuesday. I maintain what I’ve felt recently in that the recession we will face will be deep and long. That’s why I had purchased 2022financialcrisis.com 2023financialcrisis.com 2024financialcrisis.com 2025financialcrisis.com 2023recession.com recession2023.com and for good measure/fun I bought qualitativetightening.com and qualitativeeasing.com. Oil prices also took a hit, and I think that’s backwards because we’re not in a world of renewables yet, and Russian gas and oil are not in the mix for many countries. The SPR release has been extended by 30 days, and my take is that this artificial depression in oil prices will catch up with us. I own some oil stocks and renewable energy stocks, and I don’t see oil really going down much. And because I don’t see oil going down much, I see raw materials staying high and inflation keeping on going.

Exchange rates per WSJ
USD-Euro: $0.9839 (+1.33%)
USD-GBP: $1.1271 (+0.98%)
USD-CAD: $0.7429 (+0.70%)
USD-NIS: $0.2887 (+0.44%)
Yen-USD: 144.08 (-0.25%)
Won-USD: 1397.73 (-0.35%)