Wall Street is paying close attention to the latest data on labor markets and inflation, as well as on wage growth and more, as the Fed weighs up its next move. For DICK BOVE, the Fed seems increasingly likely to extend its interest rate hike campaign to finally tamp down inflation closer to its target rate of 2.00 percent. BOVE, chief financial strategist at ODEON CAPITAL GROUP, continues to see evidence of a pick up in the pace of inflation. That would factor heavily into the Fed's decision on US interest rates, which many analysts nevertheless expect to see headed back down in the next 12 months. MAT VAN ALSTYNE, ODEON co-founder and managing partner, sees that latter course unfolding. In his view, that's because of the perilous state of US government debt. "What we're looking at is the complete collapse of the fiscal ability of the US government to function—and there's only one way out," says VAN ALSTYNE.

BOVE reports on the fast moving events in the US bank sector, including Moody's decision to cut the ratings of a roster of banks. Banks are also feeling more pressure from regulators, who BOVE says are taking extreme measures damaging the industry. "Banks are shrinking, or as I put it, they have gone on strike," he says. Elsewhere, the CONVERSATION strikes up a debate on falling levels of trust in US government and on US Supreme Court decisions which have roiled the nation. Joining the CONVERSATION, JOHN AIDAN BYRNE points out that the highest court in the land may be a scapegoat at large for a society in disarray.

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