The Labor Department issued its May inflation number on Wednesday. 

Consumer Price Index (CPI) for the month was down a slight 0.1% from April’s CPI reading, now at 3.3% year-over-year. 

Contrary to the guess of the typical Wall Street economist, May’s CPI was the third “cooler than expected” inflation figure seen in weeks.

Nonetheless, the cost of housing, health care and auto insurance were major contributors to inflation during the month. 

On the flip side, gasoline and energy prices were way down, and groceries only increased 0.1%.

After CPI on Wednesday morning, the FOMC meeting concluded with a press release from the committee. 

If you recall, on May 1, the committee observed the “lack of further progress” in subduing inflation.

So… are we making progress yet?

Not enough to start easing interest rates from where they’ve been paused since July 2023. 

At this point, we’re looking at one rate cut in 2024 — a far cry from the six rate cuts wonks predicted. 

Perhaps the most interesting nugget from Fed Chair Jay Powell’s press conference was that the Fed might jettison its 2% inflation target rate. 

Powell telegraphed that an average inflation rate of 2.6–2.7% might be close enough for jazz. 

In your opinion, reader, how does the current economic situation compare to past periods of high inflation? 

Those of you who lived through the 1970s and 1980s, we'd love to hear your perspective!

Send your opinions to, feedback@newsyoucanacton.com

Your Rundown for Friday, June 14, 2024...

A New Copper Supercycle

Despite delayed Fed rate cuts, global-growth expectations are fueling a rotation into commodities.

The Nasdaq Sprott Energy Transition Index Materials (NSETM), for instance, rallied 6.35% in May, marking its third consecutive month of 6%+ gains. 

“Raw materials may return 15% over 2024 as [manufacturing] recovers, and geopolitical risks persist,” Bloomberg reported in March. 

“Copper, aluminum, gold and oil products may climb, according to [Goldman], which also stressed the need for investors to be selective as gains wouldn’t be universal

“Among Goldman’s year-end forecasts, copper was seen at $10,000 a ton, aluminum at $2,600 a ton, and gold at $2,300 an ounce.”

Today? Copper is priced at $9,732.65 a ton, aluminum at $2,563.73 a ton and gold at $2,344.60 per ounce. 

For the NSETM overall, we’re seeing a potential breakout from a two-year consolidation phase… 

Source: Bloomberg, Nasdaq Sprott Energy Transition Materials Index (Data as of 05/31/24)

More specifically, a new copper supercycle is on the horizon, driven by a convergence of global factors:

• Geopolitical shifts
• Electrification trends
• Environmental policies
• Supply limitations

Unlike the previous cycle, which was primarily China-centric, this one is global and intertwined with national security interests worldwide.

The U.S. is implementing protective measures, such as increased tariffs and import bans, to bolster domestic industries and counter foreign dominance in critical sectors. 

This has led to supply-chain friction — particularly in energy transition materials which are already limited resources.

Despite production challenges, copper miners are looking for ways to ramp-up production. 

All these factors — creating a highly favorable environment for copper prices — underpin a strong bullish outlook for the red metal. 

Two tickers, for ultra-easy exposure to copper, Sprott ETFS: COPP and COPJ. 

Market Rundown for Friday, June 14, 2024

The S&P 500 is down 0.30% to 5,415. 

Oil is up 0.50% to $79.04 for a barrel of WTI. 

Gold is up 1.10% to 2,344.60 per ounce. 

And Bitcoin is up 0.80% to $67,200. 

Send your comments and questions to, feedback@newsyoucanacton.com