Fed Chair Janet Yellen spoke on front of Congress yesterday on the U.S. economic landscape and monetary policy. Ms. Yellen confirmed the market concerns that inflation expectations would likely rise with President-elect Donald Trump’s economic plan and infrastructure spending plan. Ms. Yellen went on to say that the economy is close to full employment and employers could begin the push wages higher to attract workers, which is also inflationary. In addition, a rate hike could come "relatively soon". A December hike to the short-term Fed Funds Rate is essentially on table with a 90% probability that the Federal Reserve will raise that benchmark rate.
Black gold, Texas Tea. Those words were used to describe crude oil back in the television sitcom "The Beverly Hillbillies" back in the 1960s. Just recently, the U.S. Geological Survey reported that the largest ever oil and gas deposit was discovered in the U.S. The agency announced that the Wolfcamp shale, located in the Midland Basin portion on Texas' Perman Basin, is said to contain 20 billion barrels of oil and 1.6 billion barrels of natural gas liquid. The oil alone could be worth up to $900 billion!