Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – September 16, 2009

We're Floating with our Finger on the Lock Trigger

Mixed CPI Report

The Consumer Price Index came in hotter than expected.  This usually hurts interest rates, but when you take out the energy costs and food costs the Core CPI was right where the government expected at 0.1%.  This reading should keep retailers from increasing their prices for merchandise, and therefore keep inflation under control.  And don’t forget that inflation is interest rates worst enemy! 

Cheeseburger On Wall Street

Oh wait…that’s Jimmy Buffett, not Warren Buffet!  Warren Buffet mentioned, today, that he thinks that the worst of the recession is over, and that we’re heading toward recovery.  Coupled with the fact that Good ‘Ole Ben Bernanke stated, yesterday, that he felt that we were headed toward recovery and that the recession is, “likely over,” the stock market has reached a new high for 2009, this morning.

Interest Rates

After bouncing off the 100-Day Moving Average, Rates moved up to the 200-Day moving average and quickly richocheted off of that.  So Rates are kind of trapped right now.  So, it’s an opportunity to float, but we’ll keep our finger on the lock button, just in case.