Executive Orders
February 24, 2021
–Not much new in Powell testimony to Senate; he appears before the House today for a series of inane political speeches. Ten year yield eased to 136 yesterday, down 1.2. 5/30 posted a new high of 162 bps. 5yr auction today.
–Reuters reports that Biden will sign an executive order today to launch “an immediate 100-day review of supply chains for four critical products: semiconductor chips, batteries for electric vehicles, rare earth minerals and pharmaceuticals.” I’m no expert but it seems to me a lot of that supply comes from China. What do we do with the next 99 days? If the US wants to switch fabrication to domestic shores, I would guess that prices will shift higher.
–A KC Fed research piece from Jan 29 notes: “The indexes for input and selling prices continued to increase at a faster pace than a month ago, especially the input price index which reached its highest reading in survey history (since 2014). Firms expected input and selling prices to continue to grow in the next six months.” Thanks AOK. No. There’s no inflation.
–Another Reuters article outlines the “investment” craze for collectibles: “Once the preserve of the super-rich, or just the eccentric, all kinds of unusual investments from vintage handbags and shares in fine art to rare Pokemon cards are now the happy hunting ground for stuck-at-home punters.” Reminds me of the guy that wrote in to the auto advice column. “I have a Ford Pinto and I heard it might turn into a collectible. I’m thinking of storing it on jacks in my garage.” Response, “Good idea, maybe in a few years the jacks will be worth something.” (And you can throw your vintage purse on the front seat).
