Riders On The Storm(y)

Well, today probably should have been about trying to discern what markets were trying to say about the Fed statement and also about how folks are setting up for payrolls, but instead, the focus shifted to Michael Cohen and presidential porn star payoffs, as the nation’s focus is wont to do in 2018.

It turns out Rudy Giuliani might be too old and senile to be trusted when it comes to defending a sitting President and damage control efforts notwithstanding, ol’ Rudy really screwed the pooch on Hannity Wednesday night. That would have been bad enough on its own, but then we learned that the Feds had Cohen’s phones tapped and intercepted “at least” one call with the White House. This Stormy Daniels situation is getting like, really bad, you guys. Riders on the Storm. Literally. Or maybe, “Riders of the Stormy”.

It’s just a matter of time before Trump has some kind of epic meltdown on Twitter over this and I for one can’t wait to see what he comes up with wandering around the White House eating a greasy KFC chicken leg and drowning his sorrow in a 32 oz. container of mashed potato gravy.

Meanwhile, markets were cautious ahead of the April jobs report and on the heels of the Fed – apparently, no one knows whether the May statement was a “hawkish hold” or a “dovish relent” and in the current environment – characterized as it is by nascent signs of wage pressures and late-cycle fiscal stimulus, the difference between those two interpretations is profound.

The dollar gave some of its rebound off the post-Fed knee-jerk lows back on Thursday:

DXY