Critical Minerals Alert, Package Problems and More in Wealthion Macro Bites 8/22

–The journal Science published a Colorado School of Mines report studying geochemistry of 70 critical minerals at 54 active U.S. mines with the conclusion that recovery of 90% of these minerals (which currently end up in tailings) could satisfy nearly all of U.S. critical mineral needs.  For example, there is enough lithium in one year of U.S. mine waste to power 10 million electric vehicles (and enough manganese for 99 million EV’s).  The report demonstrates significant potential for the DOE’s recently announced funding initiatives aimed at accelerating domestic production, processing and recycling of critical minerals.

–Global postal services (including Korea Post, Deutsche Post and U.K.’s Royal Mail) are suspending parcel deliveries to the U.S. citing confusion about how to process some 4 million daily packages entering the U.S. when the de minimis tariff exemption (products valued at less than $800) expires on 8/29.  Mail services cite lack of clarity from U.S. authorities on how the duties will be collected and how to submit required data.

–FOMC participants Beth Hammack, Jeffrey Schmid, Raphael Bostic and Austan Goolsbee all stated strength in recent inflation and PMI data suggest a September rate cut is not guaranteed. 

–30-year JGB yield has spiked to 3.21% (highest on record).  Euro Stoxx 50 +0.36%, S&P futures +0.2%, Nasdaq futures +0.16%.  DXY dollar index +0.1%, spot gold -0.3% and spot silver -0.5%.