Good Wednesday AM (best day of the week),

At 11am. all eyes will be on the Fed decision, with Powell’s press conference to follow 30 minutes later.

Markets are leaning positive right now in anticipation of a dovish Fed speech after yesterday’s weaker than expected CPI. I do expect the Fed to back off a bit, but it does make me a little uneasy with markets tilting too much in advance. If we don’t get the softer comments, the knee jerk reaction could be painful. For now, equities are up and bonds improving with mortgage bonds outperforming everything else.

Speaking on CPI, I loved the two graphics below as they give some context to the data. Consumers saw lower prices for used cars, plane tickets and electricity in November compared with October. Food and shelter inflation remained elevated.

I am kind of geeking out on this…

A controlled fusion reaction produced more energy than it consumed, Energy Secretary Jennifer Granholm and other officials said. Fusion, which doesn’t release greenhouse gases or create radioactive waste, has long been seen as a potential source of clean, virtually limitless energy. Commercial application of this technology likely remains years, if not decades, away, according to fusion researchers. Science is the best!

Please remain safe and stay healthy, make today great!