- Caution not Complacency.
- Treasury Secretary Janet Yellen indicated the US Federal Government might be out of money by June 1 requiring extraordinary measures. This means not all expenses are paid unless Congress acts to increase the debt ceiling. The Debt Crises is a result of out of control spending by the Federal Government starting at the Great Financial Crises in 2008 and leaping further during COVID. Nearly $32 Trillion in US Federal debt, $35 Trillion in unfunded Medicare liability and $22 Trillion in unfunded Social Security liability. This is in comparison to total US Economy of $25 Trillion in 2022. https://www.usdebtclock.org/
- First Republic (FRC) seized by FDIC creating more panic in regional banks and accelerating the credit crunch that will push economy into a recession.
- Fed Funds Rate to 5.25% at May Meeting. QT (Quantitative Tightening) is back after pause around Silicon Valley Bank (SVB) collapse.
- Second quarter earnings will be down year over year significantly due to recession on top of a modest decline in first quarter earnings.