Despite growing evidence of systematic bank risks associated with the Fed’s aggressive rate hikes over the last year, Powell hikes another 25 bps anyhow, citing labor pressure as the culprit. However, in the real world, labor conditions are already improving.
4Q22 comp sales of +30% for Dollar General’s Value Valley set ($1 price point items) reflect their customer’s financial condition, especially when compared to the chain’s overall comp growth of just +5.7%.
Casey’s customers are driving less, but eating more pizza & drinking more energy drinks…
The Saudi minister of finance announced that the Kingdom was ending the petrodollar. “There are no issues with discussing how we settle our trade arrangements, whether it is in the US dollar, whether it is the euro, whether it is the Saudi riyal”. Yikes!
We have a choice of how to tame inflation, cut government spending, or throw people out of work.
It is high time to recognize that what ails the U.S. economy is beyond fixes from the government and/or Fed.
Fed Chair Powell’s comments during his recent Q&A (after raising the Fed Funds target range rate by +50 bps to 4.25% to 4.5%) were quite sobering to anyone willing to listen.
After locking down the country, the government tried to replace normal economic activity with $6 trillion in government transfers, leading to numerous unintended consequences.
Full serve restaurant sales performance is currently a function of customer demographics.
Comments from Dollar General’s CEO shed light on their consumer’s financial situations.
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