Prof Navarro's Weekly Market Rap,

A Hamlet Fed Question, and Sideways Market.

Hi, Peter Navarro here, putting my economist's boots on

for our Weekly Market and Economy Rap for the on week was certainly the indictment of President Trump, but it had no discernible effect on the

financial markets. I'll have much more to say about the law and politics of this in a later

podcast in Sub-stack.

On the economic front, our broad market index, the S&P 500,

traded in a tight range at the top of what is a sideways trading range with 4,000 as the lower bound.

This action, or lack thereof, signals a little bullish appetite for another move upward.

On Thursday, there was an unexpected jump in jobless claims to the highest since October 2021.

This suggests the Fed policy of inducing slower growth or recession to fight inflation

may finally be taking some effect as the labor market has been quite resilient.

Yes, workers are the Fed's sacrificial lambs.

Predictably, bond prices rose on the expectation of lower interest rates.

Here's the Fed's hamlet question plaguing the markets that will be answered at the Fed's

meeting on June 14th next week.

To pause or not to pause its rate hike strategy,

absent any further extreme news on inflation, which could come next week with the Tuesday

Consumer Price Index report, which we will watch closely, I predict that the

Fed will indeed pause. The real question is whether that will be a long or short pause.

When it announces its June pause next week, it will continue with a spin that has been

dripping out of the Fed.

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