CNBC
"2-year Treasury yield rises as investors mull interest rate outlook"
Lisa Kailai Han @LISAKAILAIHAN Sophie Kiderlin @IN/SOPHIE-KIDERLIN-B327B914A/ @SKIDERLIN
PUBLISHED THU, MAR 28 2024
KEY POINTS
* Federal Reserve Governor Christopher Waller on Wednesday said there was “no rush” to cut interest rates, adding that recent economic data indicated that rates may need to stay elevated for longer.
* On Thursday, the latest weekly jobless claims for the week that ended March 16 came in at 210,000, slightly lower than the 211,000 that economists surveyed by Dow Jones had predicted.
* Fresh inflation data is expected to be released Friday in the form of the personal consumption expenditures price index.
The 2-year Treasury yield ticked higher Thursday as investors considered the path ahead for interest rates following comments from a Federal Reserve official and prepared for key inflation data.
The 2-year Treasury yield was last up by 6 basis points at 4.63%.
The yield on the 10-year Treasury had risen 1 basis point to 4.21%.
Yields and prices move in opposite directions.
One basis point equals 0.01%.
Investors weighed the outlook for monetary policy and looked ahead to key economic data as uncertainty around when and how often interest rates will be cut this year persists.
Traders were last pricing in an around 60% chance of rates being cut in June, CME Group’s FedWatch Tool shows.
Federal Reserve Governor Christopher Waller on Wednesday said there was “no rush” to cut interest rates, adding that recent economic data indicated that rates may need to stay elevated for longer.
Waller said the data told him “that it is prudent to hold this rate at its current restrictive stance perhaps for longer than previously thought to help keep inflation on a sustainable trajectory toward 2 percent.”
On Thursday, the latest weekly jobless claims for the week that ended March 16 came in at 210,000, slightly lower than the 211,000 that economists surveyed by Dow Jones had predicted.
Markets will be closed for Good Friday, when the Bureau of Economic Analysis will release the personal consumption expenditures reading for February.
The PCE is the Fed’s preferred inflation gauge.
Personal spending and income data is also slated for Friday.
https://www.cnbc.com/2024/03/28/us-trea ... tlook.html
THE DAILY NEWS
Re: THE DAILY NEWS
REUTERS
"S&P 500 closes higher to secure strongest Q1 since 2019"
By Chuck Mikolajczak
March 28, 2024
Summary
* Comm services, tech, energy lead quarterly sector gains
* US fourth-quarter growth revised up; weekly jobless claims fall
* Walgreens gains after quarterly earnings
* Indexes: Dow up 0.12%, S&P 500 up 0.11%, Nasdaq down 0.12%
NEW YORK, March 28 (Reuters) - The S&P 500 closed out the week with slight gains on Thursday, with the benchmark index notching its strongest first quarter in five years, as investors digested the latest batch of economic data while looking towards the next inflation reading.
Each of the three main U.S. indexes recorded solid quarterly gains, led by a climb of 10.16% for the S&P 500, aided by optimism over artificial intelligence (AI) related stocks and expectations the U.S. Federal Reserve will begin to cut interest rates this year.
The blue-chip Dow sits less than 1% away from breaching the 40,000 level for the first time.
Data on Thursday showed the U.S. economy grew faster than previously estimated in the fourth quarter, partly due to strong consumer spending, while a separate report showed initial jobless claims indicated the labor market remains on solid footing.
"The economy is in pretty good shape, the consumer is in pretty good shape and still spending, unemployment is still on the low side, and there continues to be pockets where the economy is thriving ..."
"So there's money that is wanting to be spent in a variety of different ways," said George Young, portfolio manager at Villere & Company in New Orleans.
"And then you've got that carrot that the Fed's kind of holding out there saying, we may just be lowering and we may just be lowering, and everybody's trying to parse their words."
While U.S. equity markets will be closed for the Good Friday holiday, the focus will be on the release of the Personal Consumption Expenditures Price Index (PCE), the Fed's preferred inflation gauge, for clues on the timing and size of rate cuts this year from the central bank.
The Dow Jones Industrial Average rose 47.29 points, or 0.12%, to 39,807.37, the S&P 500 gained 5.86 points, or 0.11%, to 5,254.35 and the Nasdaq Composite lost 20.06 points, or 0.12%, to 16,379.46.
For the week, the Dow rose 0.84%, the S&P 500 advanced 0.39% and the Nasdaq slipped 0.3%. In March, the Dow climbed 2.08%, the S&P gained 3.1% and the Nasdaq added 1.79%.
For the quarter, the Dow gained 5.62%, the S&P 500 shot up 10.16% and the Nasdaq rallied 9.11%.
Overnight, Fed Governor Christopher Waller said recent disappointing inflation data affirms the case for the central bank to hold off on cutting its short-term interest rate target, but did not rule out trimming rates later in the year.
Markets are pricing in a roughly 64% chance the Fed will cut rates by at least 25 basis points (bps) in June, according to CME's FedWatch Tool.
While communication services, energy and tech were the best performing of the 11 major sectors this quarter, only real estate suffered a decline.
Walgreens Boots shares rose 3.19% after its quarterly earnings in which it recorded an impairment charge on its investment in clinic operator VillageMD.
Home Depot slipped 0.59% after the home improvement retailer said it would buy building materials supplier SRS Distribution in an $18.25 billion deal in its largest acquisition.
Advancing issues outnumbered decliners by a 1.87-to-1 ratio on the NYSE.
On the Nasdaq, advancing issues outnumbered decliners by a 1.42-to-1 ratio.
The S&P 500 posted 91 new 52-week highs and no new lows while the Nasdaq recorded 275 new highs and 52 new lows.
Volume on U.S. exchanges was 11.17 billion shares, compared with the 12.07 billion average for the full session over the last 20 trading days.
Reporting by Chuck Mikolajczak;
https://www.reuters.com/markets/us/futu ... 024-03-28/
"S&P 500 closes higher to secure strongest Q1 since 2019"
By Chuck Mikolajczak
March 28, 2024
Summary
* Comm services, tech, energy lead quarterly sector gains
* US fourth-quarter growth revised up; weekly jobless claims fall
* Walgreens gains after quarterly earnings
* Indexes: Dow up 0.12%, S&P 500 up 0.11%, Nasdaq down 0.12%
NEW YORK, March 28 (Reuters) - The S&P 500 closed out the week with slight gains on Thursday, with the benchmark index notching its strongest first quarter in five years, as investors digested the latest batch of economic data while looking towards the next inflation reading.
Each of the three main U.S. indexes recorded solid quarterly gains, led by a climb of 10.16% for the S&P 500, aided by optimism over artificial intelligence (AI) related stocks and expectations the U.S. Federal Reserve will begin to cut interest rates this year.
The blue-chip Dow sits less than 1% away from breaching the 40,000 level for the first time.
Data on Thursday showed the U.S. economy grew faster than previously estimated in the fourth quarter, partly due to strong consumer spending, while a separate report showed initial jobless claims indicated the labor market remains on solid footing.
"The economy is in pretty good shape, the consumer is in pretty good shape and still spending, unemployment is still on the low side, and there continues to be pockets where the economy is thriving ..."
"So there's money that is wanting to be spent in a variety of different ways," said George Young, portfolio manager at Villere & Company in New Orleans.
"And then you've got that carrot that the Fed's kind of holding out there saying, we may just be lowering and we may just be lowering, and everybody's trying to parse their words."
While U.S. equity markets will be closed for the Good Friday holiday, the focus will be on the release of the Personal Consumption Expenditures Price Index (PCE), the Fed's preferred inflation gauge, for clues on the timing and size of rate cuts this year from the central bank.
The Dow Jones Industrial Average rose 47.29 points, or 0.12%, to 39,807.37, the S&P 500 gained 5.86 points, or 0.11%, to 5,254.35 and the Nasdaq Composite lost 20.06 points, or 0.12%, to 16,379.46.
For the week, the Dow rose 0.84%, the S&P 500 advanced 0.39% and the Nasdaq slipped 0.3%. In March, the Dow climbed 2.08%, the S&P gained 3.1% and the Nasdaq added 1.79%.
For the quarter, the Dow gained 5.62%, the S&P 500 shot up 10.16% and the Nasdaq rallied 9.11%.
Overnight, Fed Governor Christopher Waller said recent disappointing inflation data affirms the case for the central bank to hold off on cutting its short-term interest rate target, but did not rule out trimming rates later in the year.
Markets are pricing in a roughly 64% chance the Fed will cut rates by at least 25 basis points (bps) in June, according to CME's FedWatch Tool.
While communication services, energy and tech were the best performing of the 11 major sectors this quarter, only real estate suffered a decline.
Walgreens Boots shares rose 3.19% after its quarterly earnings in which it recorded an impairment charge on its investment in clinic operator VillageMD.
Home Depot slipped 0.59% after the home improvement retailer said it would buy building materials supplier SRS Distribution in an $18.25 billion deal in its largest acquisition.
Advancing issues outnumbered decliners by a 1.87-to-1 ratio on the NYSE.
On the Nasdaq, advancing issues outnumbered decliners by a 1.42-to-1 ratio.
The S&P 500 posted 91 new 52-week highs and no new lows while the Nasdaq recorded 275 new highs and 52 new lows.
Volume on U.S. exchanges was 11.17 billion shares, compared with the 12.07 billion average for the full session over the last 20 trading days.
Reporting by Chuck Mikolajczak;
https://www.reuters.com/markets/us/futu ... 024-03-28/
Re: THE DAILY NEWS
REUTERS
"Fed's Waller still sees 'no rush' to cut rates amid sticky inflation data"
By Michael S. Derby
March 27, 2024
NEW YORK, March 27 (Reuters) - Recent disappointing inflation data affirms the case for the U.S. Federal Reserve to hold off on cutting its short-term interest rate target, Fed Governor Christopher Waller said on Wednesday, but he did not rule out trimming rates later in the year.
"There is no rush to cut the policy rate" right now, Waller said in a speech at an Economic Club of New York gathering.
Recent data "tells me that it is prudent to hold this rate at its current restrictive stance perhaps for longer than previously thought to help keep inflation on a sustainable trajectory toward 2%."
Rate cuts are not off the table, however, Waller said, noting that further progress expected on lowering inflation "will make it appropriate" for the Fed "to begin reducing the target range for the federal funds rate this year."
It could take a few months of easing inflation data to gain that confidence, but until then, a strong economy gives the Fed space to take stock of how the economy is performing, Waller said.
Pushing back the start of rate cuts will likely affect how much easing happens this year, he said.
"It is appropriate to reduce the overall number of rate cuts or push them further into the future in response to the recent data."
Waller's comments were his first since last week's Fed policy meeting where officials, as expected, maintained the overnight policy rate at 5.25% to 5.5%.
Policy makers also affirmed forecasts from year-end 2023 for three rate cuts this year, based on the expectation that inflation will fall back toward 2% as the year moves forward.
However, unexpectedly strong inflation this year has called into question whether the Fed can deliver on its forecast.
Fed officials are waiting to see if recent data reflects a temporary setback in the effort to reduce price pressures, and if so, this could mean dialing back rate cut expectations for the year.
At the press conference following last week's policy meeting, Fed Chairman Jerome Powell said current policy risks are "two sided."
"We're in a situation where if we ease too much or too soon, we could see inflation come back, and if we ease too late, we could do unnecessary harm to employment and people's working lives," he said.
"We want to be careful" and the strength of the economy gives the Fed space to watch the data before deciding what to do with interest rate policy, he added.
At the end of February, Waller signaled he was among the officials with some skepticism about any near-term rate cuts, given that the economy is showing strong growth amid a very strong labor market.
In comments after his formal remarks on Wednesday, Waller said there is an extremely high bar to the central bank raising rates.
“Something would really have to dramatically change on the inflation front to think about" pushing rates higher, he said.
Instead, he said, the question before the Fed is when to ease rates and "it’s just a question of when you start."
Reporting by Michael S. Derby; Editing by Richard Chang and Leslie Adler
https://www.reuters.com/markets/us/feds ... 024-03-27/
"Fed's Waller still sees 'no rush' to cut rates amid sticky inflation data"
By Michael S. Derby
March 27, 2024
NEW YORK, March 27 (Reuters) - Recent disappointing inflation data affirms the case for the U.S. Federal Reserve to hold off on cutting its short-term interest rate target, Fed Governor Christopher Waller said on Wednesday, but he did not rule out trimming rates later in the year.
"There is no rush to cut the policy rate" right now, Waller said in a speech at an Economic Club of New York gathering.
Recent data "tells me that it is prudent to hold this rate at its current restrictive stance perhaps for longer than previously thought to help keep inflation on a sustainable trajectory toward 2%."
Rate cuts are not off the table, however, Waller said, noting that further progress expected on lowering inflation "will make it appropriate" for the Fed "to begin reducing the target range for the federal funds rate this year."
It could take a few months of easing inflation data to gain that confidence, but until then, a strong economy gives the Fed space to take stock of how the economy is performing, Waller said.
Pushing back the start of rate cuts will likely affect how much easing happens this year, he said.
"It is appropriate to reduce the overall number of rate cuts or push them further into the future in response to the recent data."
Waller's comments were his first since last week's Fed policy meeting where officials, as expected, maintained the overnight policy rate at 5.25% to 5.5%.
Policy makers also affirmed forecasts from year-end 2023 for three rate cuts this year, based on the expectation that inflation will fall back toward 2% as the year moves forward.
However, unexpectedly strong inflation this year has called into question whether the Fed can deliver on its forecast.
Fed officials are waiting to see if recent data reflects a temporary setback in the effort to reduce price pressures, and if so, this could mean dialing back rate cut expectations for the year.
At the press conference following last week's policy meeting, Fed Chairman Jerome Powell said current policy risks are "two sided."
"We're in a situation where if we ease too much or too soon, we could see inflation come back, and if we ease too late, we could do unnecessary harm to employment and people's working lives," he said.
"We want to be careful" and the strength of the economy gives the Fed space to watch the data before deciding what to do with interest rate policy, he added.
At the end of February, Waller signaled he was among the officials with some skepticism about any near-term rate cuts, given that the economy is showing strong growth amid a very strong labor market.
In comments after his formal remarks on Wednesday, Waller said there is an extremely high bar to the central bank raising rates.
“Something would really have to dramatically change on the inflation front to think about" pushing rates higher, he said.
Instead, he said, the question before the Fed is when to ease rates and "it’s just a question of when you start."
Reporting by Michael S. Derby; Editing by Richard Chang and Leslie Adler
https://www.reuters.com/markets/us/feds ... 024-03-27/
Re: THE DAILY NEWS
REUTERS
"US economy continues to shine with help from consumers, labor market"
By Lucia Mutikani
March 28, 2024
Summary
* Fourth-quarter GDP growth revised up to 3.4% rate
* Consumer spending, business investment revised higher
* Corporate profits increase, boost GDI growth
* Weekly jobless claims fall 2,000 to 210,000
WASHINGTON, March 28 (Reuters) - The U.S. economy grew faster than previously estimated in the fourth quarter, boosted by strong consumer spending and business investment in nonresidential structures like factories and healthcare facilities.
The report from the Commerce Department on Thursday also showed profits rising at a solid clip last quarter, driven by nonfinancial corporations.
Increasing profits, together with rising worker productivity, could encourage companies to retain their employees, and extend the economic expansion.
The economy has shrugged off fearmongering about a recession following 525 basis points worth of interest rate hikes from the Federal Reserve since March 2022 to quell inflation.
Though momentum has slowed, it continues to outpace its global peers.
The report, which also showed underlying inflation pressures easing last quarter, did not change expectations that the U.S. central bank will start cutting rates by June.
"The economy is in good shape," said Bill Adams, chief economist at Comerica Bank in Dallas.
"It is operating on a more even keel than during the pandemic and its immediate aftermath."
Gross domestic product increased at a 3.4% annualized rate last quarter, revised up from the previously reported 3.2% pace, the Commerce Department's Bureau of Economic Analysis said in its third estimate of fourth-quarter GDP.
The revision reflected upgrades in consumer spending, business investment as well as state and local government spending, which offset downgrades to inventory accumulation and exports.
Economists polled by Reuters had expected GDP growth would be unrevised.
The economy is growing faster than the 1.8% pace Fed officials regard as the non-inflationary rate of growth.
It grew at a 4.9% pace in the July-September quarter, and expanded 2.5% in 2023, an acceleration from 1.9% in 2022.
Growth estimates for the first quarter are around a 2.0% pace.
The increase in core inflation last quarter was trimmed to a 2.0% rate from a 2.1% pace.
Stocks on Wall Street were little changed ahead of the Good Friday holiday.
The dollar rose against a basket of currencies.
U.S. Treasury prices were mixed.
CONSUMER SPENDING UPGRADED
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased at a 3.3% rate, adding 2.20 percentage points to GDP growth.
It was previously estimated to have grown at a 3.0% pace.
The upward revision was in services.
The upgrade to business spending reflected higher outlays on manufacturing as well as commercial and healthcare structures than previously estimated.
Spending on intellectual property products was also revised up, while the decline in outlays on equipment was not as steep as previously estimated.
Inventory investment was lowered to a $54.9 billion rate from the previously estimated $66.3 billion pace.
While that subtracted 0.47 percentage point from GDP growth, the outlook for this year is encouraging.
Stronger consumer spending last year and expectations for a moderation this year likely resulted in the slower pace of inventory accumulation.
"We anticipate that inventory accumulation will stabilize, then begin to pick up again over the next few years," said Michael Pearce, deputy chief U.S. economist at Oxford Economics in New York.
"That turn in the inventory cycle will help support GDP growth this year and make the slowdown gradual."
Nearly all industries contributed to growth last quarter, with nondurable goods manufacturing leading the charge, followed by retail trade, durable goods manufacturing and healthcare and social assistance.
But agriculture, wholesale trade and arts, entertainment and recreation were minor drags.
Corporate profits including inventory valuation and capital consumption adjustments increased $133.5 billion after rising $108.7 billion in the July-September quarter.
Profits of domestic nonfinancial firms increased $136.5 billion, while those of financial institutions rose $5.9 billion, more than offsetting an $8.9 billion decline in profits from the rest of the world.
Profit margins were solid.
"While firms have generally pulled back on making large capital expenditures, decent year-end profitability suggests businesses entered 2024 in adequate financial shape," said Shannon Grein, an economist at Wells Fargo in Charlotte, North Carolina.
"To the extent continued profitability enables hiring, spending could be sustained."
Higher profits together with fairly strong wage gains boosted the income side of the growth ledger.
Gross domestic income (GDI) grew at a robust 4.8% rate after increasing at a 1.9% pace in the July-September quarter.
In principle, GDP and GDI should be equal, but in practice differ as they are estimated using different and largely independent source data.
The sharp narrowing in the gap between GDP and GDI should assuage concerns that the economy's health was being overstated.
The average of GDP and GDI, also referred to as gross domestic output and considered a better measure of economic activity, increased at a 4.1% rate last quarter after advancing at a 3.4% pace in the third quarter.
A separate report from the Labor Department showed initial claims for state unemployment benefits fell 2,000 to a seasonally adjusted 210,000 for the week ended March 23.
Economists had forecast 212,000 claims in the latest week.
Claims have been hovering in a 200,000-213,000 range since February despite a rash of high-profile layoffs at the start of the year.
The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 24,000 to 1.819 million during the week ending March 16, the claims report showed.
The so-called continuing claims covered the period during which the government surveyed households for March's unemployment rate.
Continuing claims were little changed between the February and March survey periods.
The unemployment rate was at 3.9% in February.
"The labor market is becoming better balanced between demand for and supply of workers, which will help moderate upward wages pressures," said Stuart Hoffman, senior economic advisor at PNC Financial in Pittsburgh, Pennsylvania.
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci
https://www.reuters.com/markets/us/us-f ... 024-03-28/
"US economy continues to shine with help from consumers, labor market"
By Lucia Mutikani
March 28, 2024
Summary
* Fourth-quarter GDP growth revised up to 3.4% rate
* Consumer spending, business investment revised higher
* Corporate profits increase, boost GDI growth
* Weekly jobless claims fall 2,000 to 210,000
WASHINGTON, March 28 (Reuters) - The U.S. economy grew faster than previously estimated in the fourth quarter, boosted by strong consumer spending and business investment in nonresidential structures like factories and healthcare facilities.
The report from the Commerce Department on Thursday also showed profits rising at a solid clip last quarter, driven by nonfinancial corporations.
Increasing profits, together with rising worker productivity, could encourage companies to retain their employees, and extend the economic expansion.
The economy has shrugged off fearmongering about a recession following 525 basis points worth of interest rate hikes from the Federal Reserve since March 2022 to quell inflation.
Though momentum has slowed, it continues to outpace its global peers.
The report, which also showed underlying inflation pressures easing last quarter, did not change expectations that the U.S. central bank will start cutting rates by June.
"The economy is in good shape," said Bill Adams, chief economist at Comerica Bank in Dallas.
"It is operating on a more even keel than during the pandemic and its immediate aftermath."
Gross domestic product increased at a 3.4% annualized rate last quarter, revised up from the previously reported 3.2% pace, the Commerce Department's Bureau of Economic Analysis said in its third estimate of fourth-quarter GDP.
The revision reflected upgrades in consumer spending, business investment as well as state and local government spending, which offset downgrades to inventory accumulation and exports.
Economists polled by Reuters had expected GDP growth would be unrevised.
The economy is growing faster than the 1.8% pace Fed officials regard as the non-inflationary rate of growth.
It grew at a 4.9% pace in the July-September quarter, and expanded 2.5% in 2023, an acceleration from 1.9% in 2022.
Growth estimates for the first quarter are around a 2.0% pace.
The increase in core inflation last quarter was trimmed to a 2.0% rate from a 2.1% pace.
Stocks on Wall Street were little changed ahead of the Good Friday holiday.
The dollar rose against a basket of currencies.
U.S. Treasury prices were mixed.
CONSUMER SPENDING UPGRADED
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased at a 3.3% rate, adding 2.20 percentage points to GDP growth.
It was previously estimated to have grown at a 3.0% pace.
The upward revision was in services.
The upgrade to business spending reflected higher outlays on manufacturing as well as commercial and healthcare structures than previously estimated.
Spending on intellectual property products was also revised up, while the decline in outlays on equipment was not as steep as previously estimated.
Inventory investment was lowered to a $54.9 billion rate from the previously estimated $66.3 billion pace.
While that subtracted 0.47 percentage point from GDP growth, the outlook for this year is encouraging.
Stronger consumer spending last year and expectations for a moderation this year likely resulted in the slower pace of inventory accumulation.
"We anticipate that inventory accumulation will stabilize, then begin to pick up again over the next few years," said Michael Pearce, deputy chief U.S. economist at Oxford Economics in New York.
"That turn in the inventory cycle will help support GDP growth this year and make the slowdown gradual."
Nearly all industries contributed to growth last quarter, with nondurable goods manufacturing leading the charge, followed by retail trade, durable goods manufacturing and healthcare and social assistance.
But agriculture, wholesale trade and arts, entertainment and recreation were minor drags.
Corporate profits including inventory valuation and capital consumption adjustments increased $133.5 billion after rising $108.7 billion in the July-September quarter.
Profits of domestic nonfinancial firms increased $136.5 billion, while those of financial institutions rose $5.9 billion, more than offsetting an $8.9 billion decline in profits from the rest of the world.
Profit margins were solid.
"While firms have generally pulled back on making large capital expenditures, decent year-end profitability suggests businesses entered 2024 in adequate financial shape," said Shannon Grein, an economist at Wells Fargo in Charlotte, North Carolina.
"To the extent continued profitability enables hiring, spending could be sustained."
Higher profits together with fairly strong wage gains boosted the income side of the growth ledger.
Gross domestic income (GDI) grew at a robust 4.8% rate after increasing at a 1.9% pace in the July-September quarter.
In principle, GDP and GDI should be equal, but in practice differ as they are estimated using different and largely independent source data.
The sharp narrowing in the gap between GDP and GDI should assuage concerns that the economy's health was being overstated.
The average of GDP and GDI, also referred to as gross domestic output and considered a better measure of economic activity, increased at a 4.1% rate last quarter after advancing at a 3.4% pace in the third quarter.
A separate report from the Labor Department showed initial claims for state unemployment benefits fell 2,000 to a seasonally adjusted 210,000 for the week ended March 23.
Economists had forecast 212,000 claims in the latest week.
Claims have been hovering in a 200,000-213,000 range since February despite a rash of high-profile layoffs at the start of the year.
The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 24,000 to 1.819 million during the week ending March 16, the claims report showed.
The so-called continuing claims covered the period during which the government surveyed households for March's unemployment rate.
Continuing claims were little changed between the February and March survey periods.
The unemployment rate was at 3.9% in February.
"The labor market is becoming better balanced between demand for and supply of workers, which will help moderate upward wages pressures," said Stuart Hoffman, senior economic advisor at PNC Financial in Pittsburgh, Pennsylvania.
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci
https://www.reuters.com/markets/us/us-f ... 024-03-28/
Re: THE DAILY NEWS
REUTERS
"US consumer sentiment tops estimates in March to hit nearly 3-yr high, UMich says"
By Reuters
March 28, 2024
March 28 (Reuters) - U.S. consumer sentiment rose unexpectedly in March to the highest in nearly three years thanks in part to growing confidence that inflation will keep softening.
The University of Michigan's benchmark Consumer Sentiment Index rose to a final reading for the month of 79.4, the highest since July 2021, from February's 76.9.
It topped consensus estimates of 76.5 in a Reuters poll of economists, which had been the same as the preliminary March estimate released two weeks ago.
Consumer assessments of both current conditions and the economic outlook both improved from the March mid-month and February final readings.
Expectations for inflation over a one-year horizon declined to 2.9% from 3.0% in February to match January's reading, which had been the lowest since December 2020.
Over a five-year horizon, consumers saw inflation easing to 2.8% from 2.9% last month.
Reporting By Dan Burns; Editing by Chizu Nomiyama
https://www.reuters.com/markets/us/us-c ... 024-03-28/
"US consumer sentiment tops estimates in March to hit nearly 3-yr high, UMich says"
By Reuters
March 28, 2024
March 28 (Reuters) - U.S. consumer sentiment rose unexpectedly in March to the highest in nearly three years thanks in part to growing confidence that inflation will keep softening.
The University of Michigan's benchmark Consumer Sentiment Index rose to a final reading for the month of 79.4, the highest since July 2021, from February's 76.9.
It topped consensus estimates of 76.5 in a Reuters poll of economists, which had been the same as the preliminary March estimate released two weeks ago.
Consumer assessments of both current conditions and the economic outlook both improved from the March mid-month and February final readings.
Expectations for inflation over a one-year horizon declined to 2.9% from 3.0% in February to match January's reading, which had been the lowest since December 2020.
Over a five-year horizon, consumers saw inflation easing to 2.8% from 2.9% last month.
Reporting By Dan Burns; Editing by Chizu Nomiyama
https://www.reuters.com/markets/us/us-c ... 024-03-28/
Re: THE DAILY NEWS
REUTERS
"White House's Brainard says corporate profits remain elevated"
By Reuters
March 28, 2024
WASHINGTON, March 28 (Reuters) - White House National Economic Adviser Lael Brainard said on Thursday corporate profits remain elevated, after U.S. consumer sentiment rose unexpectedly in March to the highest in nearly three years on hopes inflation will keep softening.
Brainard said the Biden administration still has work to do to lower costs - a high priority as President Joe Biden grapples with voter attitudes about stubbornly high prices and mounting housing costs.
"We have more work to do to lower costs for American families ... with corporate profits still elevated, President Biden will continue to call on companies to pass their savings on to consumers," she said.
Reporting by Nandita Bose in Washington; editing by Jonathan Oatis
https://www.reuters.com/markets/us/whit ... 024-03-28/
"White House's Brainard says corporate profits remain elevated"
By Reuters
March 28, 2024
WASHINGTON, March 28 (Reuters) - White House National Economic Adviser Lael Brainard said on Thursday corporate profits remain elevated, after U.S. consumer sentiment rose unexpectedly in March to the highest in nearly three years on hopes inflation will keep softening.
Brainard said the Biden administration still has work to do to lower costs - a high priority as President Joe Biden grapples with voter attitudes about stubbornly high prices and mounting housing costs.
"We have more work to do to lower costs for American families ... with corporate profits still elevated, President Biden will continue to call on companies to pass their savings on to consumers," she said.
Reporting by Nandita Bose in Washington; editing by Jonathan Oatis
https://www.reuters.com/markets/us/whit ... 024-03-28/
Re: THE DAILY NEWS
The Wall Street Journal
"Bonds Got Relabeled. Now Millions of Americans Get Higher Electric Bills."
Story by Andrew Ackerman
29 MARCH 2024
They might not notice it, but millions of Americans are paying a little more each month for their electricity.
The cause: a seemingly insignificant decision in an arcane corner of Wall Street that rippled out to the real world.
A new label for a set of utility bonds spurred a fight with state utility regulators and crept into home electricity bills.
The amplification comes from the rise of passive investing, where money is held in funds that track an index of stocks or bonds.
Trillions of dollars are invested in these funds, making the indexes underpinning them more important than ever.
Those indexes are created by private companies and there is little U.S. regulation on how investment securities are categorized to fit them into, or leave them out of, the indexes.
It was just such a decision that has led to some higher power bills.
In the summer of 2022, financial-data giant Bloomberg decided that certain bonds sold by utilities would no longer be classified as corporate bonds.
Instead, the bonds — sold by utilities to repair their systems following natural disasters — would be considered asset-backed securities.
The reclassification of these so-called recovery bonds altered their placement in Bloomberg’s widely followed bond indexes.
That, in turn, restricted the pool of potential buyers for these bonds since many institutional and individual investors are prohibited from buying asset-backed instruments.
The upshot?
The utility companies end up paying more interest on new issuances of this type of debt, a cost that is passed on to customers in the form of higher monthly electricity bills.
While often small on a household level, collectively the pricing changes will run to roughly $3 billion in additional costs over the life of the bonds, according to Joseph Fichera, chief executive of Saber Partners, which advises state governments on these kinds of financial deals.
That translates to roughly $150 million annually.
“This unexplained reversal and massive mispricing may be great for Wall Street but is not fair to electricity customers,” said Fichera, who has asked Bloomberg to reconsider the change on behalf of several clients.
Some state electricity regulators say the move is a mistake that forces customers to overpay for debt that’s safer and less complex than what’s typically used in asset-backed offerings.
Critics say it ignores regulatory precedence treating the bonds like corporate securities.
“This is against the public interest,” said Andrew Maurey, director of the division of accounting and finance at the Florida Public Service Commission, the state’s utility regulator.
He filed a complaint to Bloomberg about the change.
It went unanswered, he said.
The utilities’ concerns “appeared to carry little weight in the decision,” said Bob Boada, a former treasurer of Southern California Edison and its parent, Edison International.
These types of bonds have been growing rapidly.
There are about $31 billion in recovery bonds outstanding in 2024, according to Saber Partners.
That’s up from roughly $8.5 billion in 2016, according to a Duke Energy Florida filing.
Hawaiian Electric could soon offer billions of dollars of them to help it rebuild after last year’s Maui wildfires.
A Bloomberg spokesman said the decision “was made through a robust governance process, public consultation and reflected broad market feedback, and we strongly believe it serves the public interest with a more accurate and transparent market.”
“We stand by the decision,” he added.
Best known for its news service and data terminals, Bloomberg is especially important to the recovery bonds because it is a leading index provider for corporate debt.
(Editors of The Wall Street Journal help select the components of a stock market index, the Dow Jones Industrial Average, of 30 large “blue chip” stocks listed in the U.S.)
Bloomberg receives fees from firms, such as asset-management companies, large banks and pension funds, which use the indexes as benchmarks or to create investment securities.
Some advocates have already called for more regulation of the index firms and the Securities and Exchange Commission has sought public comment on whether to do so.
The recovery bond fight started after a May 2022 bond offering from California’s PG&E.
Bloomberg said it reconsidered the recovery bonds due to their rising popularity and investor calls to do so.
Since the reclassification, recovery bonds have come with higher borrowing costs than other triple-A-rated corporate securities, according to a Journal review of transaction data.
The review took into account the difference, or spread, between different bond issues and comparable U.S. Treasurys.
For example, Southern California Edison in 2021 issued bonds structured as corporate securities to finance wildfire cleanup.
At the time, a roughly 20-year slug of the securities yielded about 0.6 percentage point more than a 20-year U.S. Treasury, according to Federal Reserve data.
Other top-rated corporate bonds were trading at slightly narrower spreads to Treasurys.
When the utility, which serves five million customers in Los Angeles, sold another approximately 20-year bond in April 2023, after Bloomberg’s change, the bonds’ spread to Treasurys had jumped to about 1.2 percentage points.
The spreads for top-rated corporate bonds were essentially unchanged.
One of the biggest effects appeared to be at PG&E, which went to market twice in the middle of 2022, both before and after Bloomberg announced it was considering the change.
In the May offering that started the fight, PG&E got a spread of about 1.60 percentage points above corresponding U.S. Treasury rates, while triple-A-rated corporate bonds issued by Johnson & Johnson were trading at a spread of 0.88 percentage point.
On a similar offering in July, the utility’s borrowing costs shot up to 1.95 percentage points above Treasurys, while the spread of Johnson & Johnson bonds to Treasurys narrowed to 0.69 percentage point.
Write to Andrew Ackerman at andrew.ackerman@wsj.com
https://www.msn.com/en-us/money/markets ... 05b9&ei=33
"Bonds Got Relabeled. Now Millions of Americans Get Higher Electric Bills."
Story by Andrew Ackerman
29 MARCH 2024
They might not notice it, but millions of Americans are paying a little more each month for their electricity.
The cause: a seemingly insignificant decision in an arcane corner of Wall Street that rippled out to the real world.
A new label for a set of utility bonds spurred a fight with state utility regulators and crept into home electricity bills.
The amplification comes from the rise of passive investing, where money is held in funds that track an index of stocks or bonds.
Trillions of dollars are invested in these funds, making the indexes underpinning them more important than ever.
Those indexes are created by private companies and there is little U.S. regulation on how investment securities are categorized to fit them into, or leave them out of, the indexes.
It was just such a decision that has led to some higher power bills.
In the summer of 2022, financial-data giant Bloomberg decided that certain bonds sold by utilities would no longer be classified as corporate bonds.
Instead, the bonds — sold by utilities to repair their systems following natural disasters — would be considered asset-backed securities.
The reclassification of these so-called recovery bonds altered their placement in Bloomberg’s widely followed bond indexes.
That, in turn, restricted the pool of potential buyers for these bonds since many institutional and individual investors are prohibited from buying asset-backed instruments.
The upshot?
The utility companies end up paying more interest on new issuances of this type of debt, a cost that is passed on to customers in the form of higher monthly electricity bills.
While often small on a household level, collectively the pricing changes will run to roughly $3 billion in additional costs over the life of the bonds, according to Joseph Fichera, chief executive of Saber Partners, which advises state governments on these kinds of financial deals.
That translates to roughly $150 million annually.
“This unexplained reversal and massive mispricing may be great for Wall Street but is not fair to electricity customers,” said Fichera, who has asked Bloomberg to reconsider the change on behalf of several clients.
Some state electricity regulators say the move is a mistake that forces customers to overpay for debt that’s safer and less complex than what’s typically used in asset-backed offerings.
Critics say it ignores regulatory precedence treating the bonds like corporate securities.
“This is against the public interest,” said Andrew Maurey, director of the division of accounting and finance at the Florida Public Service Commission, the state’s utility regulator.
He filed a complaint to Bloomberg about the change.
It went unanswered, he said.
The utilities’ concerns “appeared to carry little weight in the decision,” said Bob Boada, a former treasurer of Southern California Edison and its parent, Edison International.
These types of bonds have been growing rapidly.
There are about $31 billion in recovery bonds outstanding in 2024, according to Saber Partners.
That’s up from roughly $8.5 billion in 2016, according to a Duke Energy Florida filing.
Hawaiian Electric could soon offer billions of dollars of them to help it rebuild after last year’s Maui wildfires.
A Bloomberg spokesman said the decision “was made through a robust governance process, public consultation and reflected broad market feedback, and we strongly believe it serves the public interest with a more accurate and transparent market.”
“We stand by the decision,” he added.
Best known for its news service and data terminals, Bloomberg is especially important to the recovery bonds because it is a leading index provider for corporate debt.
(Editors of The Wall Street Journal help select the components of a stock market index, the Dow Jones Industrial Average, of 30 large “blue chip” stocks listed in the U.S.)
Bloomberg receives fees from firms, such as asset-management companies, large banks and pension funds, which use the indexes as benchmarks or to create investment securities.
Some advocates have already called for more regulation of the index firms and the Securities and Exchange Commission has sought public comment on whether to do so.
The recovery bond fight started after a May 2022 bond offering from California’s PG&E.
Bloomberg said it reconsidered the recovery bonds due to their rising popularity and investor calls to do so.
Since the reclassification, recovery bonds have come with higher borrowing costs than other triple-A-rated corporate securities, according to a Journal review of transaction data.
The review took into account the difference, or spread, between different bond issues and comparable U.S. Treasurys.
For example, Southern California Edison in 2021 issued bonds structured as corporate securities to finance wildfire cleanup.
At the time, a roughly 20-year slug of the securities yielded about 0.6 percentage point more than a 20-year U.S. Treasury, according to Federal Reserve data.
Other top-rated corporate bonds were trading at slightly narrower spreads to Treasurys.
When the utility, which serves five million customers in Los Angeles, sold another approximately 20-year bond in April 2023, after Bloomberg’s change, the bonds’ spread to Treasurys had jumped to about 1.2 percentage points.
The spreads for top-rated corporate bonds were essentially unchanged.
One of the biggest effects appeared to be at PG&E, which went to market twice in the middle of 2022, both before and after Bloomberg announced it was considering the change.
In the May offering that started the fight, PG&E got a spread of about 1.60 percentage points above corresponding U.S. Treasury rates, while triple-A-rated corporate bonds issued by Johnson & Johnson were trading at a spread of 0.88 percentage point.
On a similar offering in July, the utility’s borrowing costs shot up to 1.95 percentage points above Treasurys, while the spread of Johnson & Johnson bonds to Treasurys narrowed to 0.69 percentage point.
Write to Andrew Ackerman at andrew.ackerman@wsj.com
https://www.msn.com/en-us/money/markets ... 05b9&ei=33
Re: THE DAILY NEWS
The Western Journal
"Lib Host Jon Stewart Overvalued His Home By 829% After Saying Trump Civil Case Is 'Not Victimless'"
Story by Warner Todd Huston
29 MARCH 2024
Virulently anti-Trump comedian and TV host Jon Stewart is facing a backlash after being accused of perpetrating the same behavior that he has criticized former President Donald Trump of committing.
Stewart is facing criticism after attacking Trump over claims that he overvalued some of his properties, a claim lodged against him during the former president’s New York civil case.
The former president has blasted the $454 million appeal bond and his legal team has questioned the ruling and said it is untoward for a "victimless crime."
But Stewart has scoffed at that defense.
Stewart's "The Daily Show" had run a clip of "Shark Tank" star Kevin O’Leary attacking the ruling on CNN and saying that the whole court case is a danger for the entire real estate industry, the New York Post reported.
In the clip, CNN’s Laura Coates replied to O'Leary by pointing out that Trump was accused of falsifying business records in the second degree, along with insurance fraud and making false financial statements, all in connection with an attempt to inflate his assets.
But O'Leary explained that "everything that you just listed off is done by every real estate developer everywhere on Earth in every city."
"This has never been prosecuted."
After the clip ended, Stweart jumped in to quip, "How is he not this mad about overvaluations in the real world?
"Because they are not victimless crimes," Stewart added.
Stewart continued his attack, saying that, "money isn’t infinite."
"A loan that goes to the liar doesn’t go to someone who’s giving a more honest evaluation."
"So the system becomes incentivized for corruption."
He went on to claim that if someone pays lower taxes based on lower property values, then that is fraud.
"The attorney general of New York knew that Trump’s property values were inflated because when it came time to pay taxes, Trump undervalued the very same properties," Stewart exclaimed.
"It was all part of a very specific real estate practice known as lying."
Stewart's righteous indignation, though, soon came under fire when social media users began to notice a small flaw in Stewart's pious stance against Trump and his "fraud."
The Post reported that Stewart's 2014 sale of his Tribeca duplex was not all as above-board as the TV host may have contended.
Stewart sold his 6,280-square-foot apartment to financier Parag Pande for $17.5 million.
But at the time, the asking price of the property was not made public.
However, according to 2013-2014 assessor's report, the property was only assessed at a market value of only $1.882 million.
And the assessor's value came in even lower at $847,174.
The overvaluation added up to a whopping 829 percent, according to the Post.
With all that, it was noted that Stewart paid far less in taxes on a property assessed at a mere $847,174, than he would on a property "worth" $17.5 million.
But even more to the point, Pande resold the property for only around $13 million in 2021, a 26 percent loss.
Stewart's financial windfall caused many to wonder if the TV star committed the same "fraud" that he claimed that Trump committed.
Did @jonstewart commit fraud when he sold his penthouse for $17.5M?
NY listed its market value at $1.8M an AV at around 800k
Who did he He defraud??
I am SHOCKED
SHOCKED pic.twitter.com/9okis96VQP
— Tim Pool (@Timcast) March 26, 2024
The Post added that the tax bill for Stewart's penthouse was assessed in the same way that Trump's was, the same formula that New York Attorney General Letitia James used to claim Trump committed fraud.
"Stewart’s reps did not respond to The Post’s request for comment," the outlet reported.
https://www.msn.com/en-us/tv/news/lib-h ... 05b9&ei=46
"Lib Host Jon Stewart Overvalued His Home By 829% After Saying Trump Civil Case Is 'Not Victimless'"
Story by Warner Todd Huston
29 MARCH 2024
Virulently anti-Trump comedian and TV host Jon Stewart is facing a backlash after being accused of perpetrating the same behavior that he has criticized former President Donald Trump of committing.
Stewart is facing criticism after attacking Trump over claims that he overvalued some of his properties, a claim lodged against him during the former president’s New York civil case.
The former president has blasted the $454 million appeal bond and his legal team has questioned the ruling and said it is untoward for a "victimless crime."
But Stewart has scoffed at that defense.
Stewart's "The Daily Show" had run a clip of "Shark Tank" star Kevin O’Leary attacking the ruling on CNN and saying that the whole court case is a danger for the entire real estate industry, the New York Post reported.
In the clip, CNN’s Laura Coates replied to O'Leary by pointing out that Trump was accused of falsifying business records in the second degree, along with insurance fraud and making false financial statements, all in connection with an attempt to inflate his assets.
But O'Leary explained that "everything that you just listed off is done by every real estate developer everywhere on Earth in every city."
"This has never been prosecuted."
After the clip ended, Stweart jumped in to quip, "How is he not this mad about overvaluations in the real world?
"Because they are not victimless crimes," Stewart added.
Stewart continued his attack, saying that, "money isn’t infinite."
"A loan that goes to the liar doesn’t go to someone who’s giving a more honest evaluation."
"So the system becomes incentivized for corruption."
He went on to claim that if someone pays lower taxes based on lower property values, then that is fraud.
"The attorney general of New York knew that Trump’s property values were inflated because when it came time to pay taxes, Trump undervalued the very same properties," Stewart exclaimed.
"It was all part of a very specific real estate practice known as lying."
Stewart's righteous indignation, though, soon came under fire when social media users began to notice a small flaw in Stewart's pious stance against Trump and his "fraud."
The Post reported that Stewart's 2014 sale of his Tribeca duplex was not all as above-board as the TV host may have contended.
Stewart sold his 6,280-square-foot apartment to financier Parag Pande for $17.5 million.
But at the time, the asking price of the property was not made public.
However, according to 2013-2014 assessor's report, the property was only assessed at a market value of only $1.882 million.
And the assessor's value came in even lower at $847,174.
The overvaluation added up to a whopping 829 percent, according to the Post.
With all that, it was noted that Stewart paid far less in taxes on a property assessed at a mere $847,174, than he would on a property "worth" $17.5 million.
But even more to the point, Pande resold the property for only around $13 million in 2021, a 26 percent loss.
Stewart's financial windfall caused many to wonder if the TV star committed the same "fraud" that he claimed that Trump committed.
Did @jonstewart commit fraud when he sold his penthouse for $17.5M?
NY listed its market value at $1.8M an AV at around 800k
Who did he He defraud??
I am SHOCKED
SHOCKED pic.twitter.com/9okis96VQP
— Tim Pool (@Timcast) March 26, 2024
The Post added that the tax bill for Stewart's penthouse was assessed in the same way that Trump's was, the same formula that New York Attorney General Letitia James used to claim Trump committed fraud.
"Stewart’s reps did not respond to The Post’s request for comment," the outlet reported.
https://www.msn.com/en-us/tv/news/lib-h ... 05b9&ei=46
Re: THE DAILY NEWS
Business Insider
"US Army general says the 'future is not bright' for towed artillery, like the M777s America gave Ukraine to fight the Russians"
Story by cpanella@businessinsider.com (Chris Panella)
29 MARCH 2024
* A US general said the "future is not bright for towed artillery," weapons like the M777 howitzer.
* Gen. Rainey cited the need for mobile, indirect fires and autonomous capabilities for future conflict.
* The war in Ukraine has put artillery back in the center of land combat, with both sides relying on it heavily.
A US Army general said the age of the towed artillery cannon may be coming to an end and suggested the prioritization of other, more mobile options.
The general's comments on towed artillery, systems like the M777 howitzer, come as these weapons are being used in the war in Ukraine.
Artillery pieces, including towed weapons provided to Kyiv by the US and other partners, are front and center, with both sides heavily relying on them in combat for indirect fire.
At the Association of the United States Army's Global Force symposium this week, US Army Futures Command head Gen. James Rainey said towed artillery's days are probably numbered, or at least should be.
"I personally believe that we have witnessed the end of the effectiveness of towed artillery: The future is not bright for towed artillery," Rainey said, according to Breaking Defense.
Rainey said, per Defense One, that future warfare will demand artillery systems that can "continuously move" with "no displacement" time, talking about the time to relocate the gun after firing it, a task that can take several minutes and put crews at risk.
The four-star general said the Army should instead be prioritizing highly mobile indirect-fire options, as well as autonomous capabilities that don't require troops to load and fire.
Rainey said he's "very interested in autonomous and robotic cannon solutions" for joint forcible entry formations, Defense News reported.
Rainey also cited the Army's conventional fires study completed in July 2023.
The study, he said, was partially spurred by "what's happening in Ukraine" and what may be needed across operational theaters, such as the Indo-Pacific.
That study looked into what capabilities the Army needs to field going forward, as well as what new technologies are worthwhile for investment and procurement.
Finding the right artillery solution is a work in progress though.
The strategic long-range cannon with a 1,000-mile range never came about, and the Army recently decided that its Extended Range Cannon Artillery simply wasn't what it actually needed for the future fight after some successful tests.
Though towed artillery might not have a future in the US Army, assets like the M777 howitzer are seeing major use in the war in Ukraine.
Multiple military aid packages since Russia launched its full-scale invasion have included howitzers and significant amounts of ammunition.
As both Russia and Ukraine burned through artillery shells at astonishing rates, the US and its allies prioritized production to keep Kyiv in the fight.
That support from the US, however, has waned in recent months amid political roadblocks in Congress that have left Ukrainian units rationing shells.
But while artillery, including towed units and self-propelled assets firing rockets and shells, has been a dominant element of the war in Ukraine thus far, it's also shown vulnerabilities in a modern fight.
Drones, for instance, have dominated the skies and have easily targeted artillery systems and denied troops mobility and access to safely move pieces to new positions.
https://www.msn.com/en-us/news/world/us ... 05b9&ei=66
"US Army general says the 'future is not bright' for towed artillery, like the M777s America gave Ukraine to fight the Russians"
Story by cpanella@businessinsider.com (Chris Panella)
29 MARCH 2024
* A US general said the "future is not bright for towed artillery," weapons like the M777 howitzer.
* Gen. Rainey cited the need for mobile, indirect fires and autonomous capabilities for future conflict.
* The war in Ukraine has put artillery back in the center of land combat, with both sides relying on it heavily.
A US Army general said the age of the towed artillery cannon may be coming to an end and suggested the prioritization of other, more mobile options.
The general's comments on towed artillery, systems like the M777 howitzer, come as these weapons are being used in the war in Ukraine.
Artillery pieces, including towed weapons provided to Kyiv by the US and other partners, are front and center, with both sides heavily relying on them in combat for indirect fire.
At the Association of the United States Army's Global Force symposium this week, US Army Futures Command head Gen. James Rainey said towed artillery's days are probably numbered, or at least should be.
"I personally believe that we have witnessed the end of the effectiveness of towed artillery: The future is not bright for towed artillery," Rainey said, according to Breaking Defense.
Rainey said, per Defense One, that future warfare will demand artillery systems that can "continuously move" with "no displacement" time, talking about the time to relocate the gun after firing it, a task that can take several minutes and put crews at risk.
The four-star general said the Army should instead be prioritizing highly mobile indirect-fire options, as well as autonomous capabilities that don't require troops to load and fire.
Rainey said he's "very interested in autonomous and robotic cannon solutions" for joint forcible entry formations, Defense News reported.
Rainey also cited the Army's conventional fires study completed in July 2023.
The study, he said, was partially spurred by "what's happening in Ukraine" and what may be needed across operational theaters, such as the Indo-Pacific.
That study looked into what capabilities the Army needs to field going forward, as well as what new technologies are worthwhile for investment and procurement.
Finding the right artillery solution is a work in progress though.
The strategic long-range cannon with a 1,000-mile range never came about, and the Army recently decided that its Extended Range Cannon Artillery simply wasn't what it actually needed for the future fight after some successful tests.
Though towed artillery might not have a future in the US Army, assets like the M777 howitzer are seeing major use in the war in Ukraine.
Multiple military aid packages since Russia launched its full-scale invasion have included howitzers and significant amounts of ammunition.
As both Russia and Ukraine burned through artillery shells at astonishing rates, the US and its allies prioritized production to keep Kyiv in the fight.
That support from the US, however, has waned in recent months amid political roadblocks in Congress that have left Ukrainian units rationing shells.
But while artillery, including towed units and self-propelled assets firing rockets and shells, has been a dominant element of the war in Ukraine thus far, it's also shown vulnerabilities in a modern fight.
Drones, for instance, have dominated the skies and have easily targeted artillery systems and denied troops mobility and access to safely move pieces to new positions.
https://www.msn.com/en-us/news/world/us ... 05b9&ei=66
Re: THE DAILY NEWS
The Washington Examiner
"Biden’s Gaza pier is a dangerous, illogical election-year gimmick"
Story by Sen. Roger Wicker
29 MARCH 2024
For the next month and a half, a small group of Army logistics vessels will inch across the Atlantic, traveling at a third of the speed of a Navy warship.
Then, according to the Biden administration, soldiers will take two months to build a floating pier to deliver food and aid to Gaza.
All told, relief may not meet needy hands for months — barring any delays.
One would be hard-pressed to find a more dangerous and illogical election-year gimmick from our commander in chief.
A casual glance at this “emergency mission” prompts several questions, each of which has an unsatisfying answer.
They all clearly indicate that the person best served by this mission is not the American citizen, the U.S. service member, the Palestinian civilian, or the Israeli soldier, but President Joe Biden, candidate for reelection.
I am demanding answers for this waste of tax dollars and military readiness capability.
Last week, I led my Republican Senate Armed Services Committee colleagues in an official request to the commander in chief, asking for a baseline explanation of this looming disaster.
We note that the project seems to have been announced without the Biden administration doing any planning.
In fact, the president shared the news in a made-for-TV moment during the State of the Union.
I am told that as senior Department of Defense officials watched, they wondered how their teams would implement this prime-time directive.
We also do not know how U.S. soldiers will be protected throughout this deployment.
In the region, our forces are already subjected to a steady barrage of missile and drone attacks from Iran’s proxies.
It is unreasonable to assume this mission would be exempt from similar attacks.
Crucially, no one has figured out how this effort will get the aid to civilians in need.
On the ground in Gaza, we do not have partners we can trust to deliver aid where it needs to go.
The absence of a delivery plan underscores the futility of this mission.
The CENTCOM commander recently attributed the challenges regarding humanitarian aid to the security situation within Gaza.
In other words, the blame rests with Hamas terrorists, who regularly steal and hoard the aid.
In fact, without solid local partners, the pier could create more challenges than it solves.
The president vowed that “no U.S. boots will be on the ground” in his State of the Union address.
That is a wise commitment.
But it still relegates our soldiers to the sea, on a static target, while chaos could fester on land at the end of the pier.
What will keep Hamas or other agitators from camping out on the shore?
A multitude of risks are foreseeable.
Troops have already shipped out, yet the haphazard rollout of this plan shows it is being written as it is being enacted.
The whole operation underscores two broader points.
First, the mission raises fundamental questions about the president’s flawed approach to the broader region.
The Houthis are waging an unrestricted campaign of terrorism against commercial shipping, forcing the United States to commit a naval task force to the region indefinitely.
Meanwhile, five American hostages — and dozens of Israelis — continue to languish in captivity in Gaza.
Israel is on the cusp of dismantling Hamas with one final push in Rafah.
To order an Army aid mission in this context is senseless at best and outright dangerous at worst.
Second, the U.S. military is being asked to do too much with too little.
There is a yawning gap between the number of Army logistics ships we need and the ones we have — a sobering fact underscored by the demands of this mission.
Ideally, these soldiers would be protected by Marines, but we simply do not have enough amphibious ships to put them in position.
A stronger defense industrial base would help remedy both these challenges.
In 1983, Hezbollah killed 241 American service members in Beirut, and the U.S. found itself in a Middle East crisis not unlike today’s.
Then-Defense Secretary Caspar Weinberger posed several yes-or-no questions to help shape President Ronald Reagan’s use of military force.
The series became the “Weinberger Doctrine.”
He asked:
Are the vital national interests of the U.S. involved?
Do we have the clear intention of winning?
Are military and political objectives clearly defined?
Is there reasonable assurance the American public supports this?
Is the deployment of troops a last resort?
For this mission, Biden would have to answer all these questions in the negative.
It seems this pier functions primarily as the president’s lifeline to a small group of voters he needs to appease.
It is time for Biden to follow Weinberger’s framework.
If he does, he will terminate this ill-conceived mission.
Roger Wicker is a U.S. senator for Mississippi and serves as the ranking member of the Senate Armed Services Committee.
https://www.msn.com/en-us/news/politics ... 2c90&ei=46
"Biden’s Gaza pier is a dangerous, illogical election-year gimmick"
Story by Sen. Roger Wicker
29 MARCH 2024
For the next month and a half, a small group of Army logistics vessels will inch across the Atlantic, traveling at a third of the speed of a Navy warship.
Then, according to the Biden administration, soldiers will take two months to build a floating pier to deliver food and aid to Gaza.
All told, relief may not meet needy hands for months — barring any delays.
One would be hard-pressed to find a more dangerous and illogical election-year gimmick from our commander in chief.
A casual glance at this “emergency mission” prompts several questions, each of which has an unsatisfying answer.
They all clearly indicate that the person best served by this mission is not the American citizen, the U.S. service member, the Palestinian civilian, or the Israeli soldier, but President Joe Biden, candidate for reelection.
I am demanding answers for this waste of tax dollars and military readiness capability.
Last week, I led my Republican Senate Armed Services Committee colleagues in an official request to the commander in chief, asking for a baseline explanation of this looming disaster.
We note that the project seems to have been announced without the Biden administration doing any planning.
In fact, the president shared the news in a made-for-TV moment during the State of the Union.
I am told that as senior Department of Defense officials watched, they wondered how their teams would implement this prime-time directive.
We also do not know how U.S. soldiers will be protected throughout this deployment.
In the region, our forces are already subjected to a steady barrage of missile and drone attacks from Iran’s proxies.
It is unreasonable to assume this mission would be exempt from similar attacks.
Crucially, no one has figured out how this effort will get the aid to civilians in need.
On the ground in Gaza, we do not have partners we can trust to deliver aid where it needs to go.
The absence of a delivery plan underscores the futility of this mission.
The CENTCOM commander recently attributed the challenges regarding humanitarian aid to the security situation within Gaza.
In other words, the blame rests with Hamas terrorists, who regularly steal and hoard the aid.
In fact, without solid local partners, the pier could create more challenges than it solves.
The president vowed that “no U.S. boots will be on the ground” in his State of the Union address.
That is a wise commitment.
But it still relegates our soldiers to the sea, on a static target, while chaos could fester on land at the end of the pier.
What will keep Hamas or other agitators from camping out on the shore?
A multitude of risks are foreseeable.
Troops have already shipped out, yet the haphazard rollout of this plan shows it is being written as it is being enacted.
The whole operation underscores two broader points.
First, the mission raises fundamental questions about the president’s flawed approach to the broader region.
The Houthis are waging an unrestricted campaign of terrorism against commercial shipping, forcing the United States to commit a naval task force to the region indefinitely.
Meanwhile, five American hostages — and dozens of Israelis — continue to languish in captivity in Gaza.
Israel is on the cusp of dismantling Hamas with one final push in Rafah.
To order an Army aid mission in this context is senseless at best and outright dangerous at worst.
Second, the U.S. military is being asked to do too much with too little.
There is a yawning gap between the number of Army logistics ships we need and the ones we have — a sobering fact underscored by the demands of this mission.
Ideally, these soldiers would be protected by Marines, but we simply do not have enough amphibious ships to put them in position.
A stronger defense industrial base would help remedy both these challenges.
In 1983, Hezbollah killed 241 American service members in Beirut, and the U.S. found itself in a Middle East crisis not unlike today’s.
Then-Defense Secretary Caspar Weinberger posed several yes-or-no questions to help shape President Ronald Reagan’s use of military force.
The series became the “Weinberger Doctrine.”
He asked:
Are the vital national interests of the U.S. involved?
Do we have the clear intention of winning?
Are military and political objectives clearly defined?
Is there reasonable assurance the American public supports this?
Is the deployment of troops a last resort?
For this mission, Biden would have to answer all these questions in the negative.
It seems this pier functions primarily as the president’s lifeline to a small group of voters he needs to appease.
It is time for Biden to follow Weinberger’s framework.
If he does, he will terminate this ill-conceived mission.
Roger Wicker is a U.S. senator for Mississippi and serves as the ranking member of the Senate Armed Services Committee.
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