FED Likely To Make EMERGENCY Rate CUT
Things are moving fast. Interest rates & oil continue to fall. By the time we get the various economic reports on employment over the next two days and because the stock market will probably be selling off dramatically, the Federal Reserve could be ending QT and making an emergency rate cut at next week’s meeting.(if not before) When asked by reporters what happened to “higher for longer?” Chairman Powell invoked John Maynard Keynes famous line, “When the facts change, I change my mind. What do you do, sir?”
As of right now, consensus is 97.7% chance they leave rates where they are at for the Dec. 13 meeting. Dec. 31 meeting there is a 12.1% chance the reduce rates by 0.25% (87.9% chance they leave them at the current rate.
KenS… I’ll go a step further and just say it. To think the FED is going to make an “emergency” rate cut is nothing short of delusional
Even though FED may not make an emergency rate cut, these headlines are unnerving:
https://www.zerohedge.com/markets/here-comes-cliff-carson-block-shorts-blackstone-mortgage-reit-liquidity-crisis-risks-mount
https://finance.yahoo.com/news/1-muddy-waters-short-blackstone-175349757.html
Also, it has been a while since I saw gas under $4 in the Silicon Valley.
The signs of a recession are growing by the day.
GL
Unnerving ? I think it’s great. Time for a Hard Landing…can’t keep inflating this Balloon
Hey, now, just what is your problem with balloons? You want it to crash?! Is that why you like NASCAR races??? All you really seem to care about is your own ass! Get your Mojo working 😉
Might be, but history shows the FED doesn’t set rates it follows the rates set by the market. Yes, they set FED funds but they follow what treasuries are doing as set by the marketplace. Often with a considerable lag but they are going to have to cut because they went too far like they always do. They aren’t going back to zero, nor should they, but to mitigate the pain that is coming from their excessive increases, warrants an emergency cut.