Mind The Curveball: The Fed's Clip Is Less Than Half Full With No Reason Or Room For A Precautionary Cut

Remember, the Fed is coming from the lowest bound ever to commence a new rate cut cycle. 225 basis points. Compared to the last 2 cycles they have less than half of available ammunition available. They’d be nuts to cut here, but with this crew who knows. After all they jump as soon as the market so much as sneezes.

But that’s the problem for the Fed here, the market is not sneezing, it’s jammed near all time highs on the expectation of rate cuts. But it’s the Fed’s own fault, the constant proactive interventions have created the expectation game.

 

 

 

 

 

 

https://northmantrader.com/2019/06/14/curveball/

 

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.