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Wednesday, April 18, 2018

Rising steel prices? Get the rest of the story

The Wall Street Journal resorted to a Fake New headline today, "Fed Report Finds Steel Prices Rising After Tariffs Imposed. Beige book says prices increased at a moderate pace in different parts of U.S. and dramatically in some instances."

The story didn't match the headline.

Yes, prices for products containing steel rose.

But prices for products not containing steel rose.

The bottom line was at the end of the story.

"Firms in the primary metals and electrical- and industrial-products manufacturing industries in the Cleveland district reported that 'pro-business' fiscal policy and a corporate-tax overhaul spurred capital expenditures and drove up demand, according to the Fed’s Wednesday report," the Journal said.

"Fed officials will consider the beige book ahead of their May 1-2 meeting. Officials raised the central bank’s benchmark interest rate at their March meeting and have indicated they plan to continue to gradually raise rates in the coming months.

"Overall, the report showed the U.S. economy expanding at a healthy clip. Widespread employment growth continued, with many businesses describing the labor market as 'tight.'"

So demand driven by tax cuts is pushing prices higher, as is usually the case.

That also applies to a tight labor market, which is seeing wages rise. Skilled workers are in demand in a way not seen in 40 years. Even West Virginia suffers a shortage of welders.

The economy is expanding. President Trump wants American steelworkers and steel companies to benefit, not the Chinese.

This ticks off the global Marxists at the Journal. And so the Journal publishes Fake News headlines.

Fortunately, the story ended with the real news.


  1. Good luck getting the.minorities to work and off of free money programs. Thats the big hurdle

  2. Don, do you think that we're applying "Rod of Steel" in Iran now?

    1. Iran is a geologically active area. But, anything is possible.

  3. As we all know practically no one reads to the end of the story. And WSJ is behind a paywall, too. Thanks for doing the work for us, Don!

  4. Economics 101. Demand rises, supply stays the same or decreases, prices go up.

  5. Damn - I knew I should have retrained as a welder.

    Such is life.