Thread: Fed Cuts Rates 50 Basis Points

Fed live press conference...

Dead cat bounce.

The Dow and S&P 500 are already back in negative territory.

It's clear that this is going to be a crazy roller coaster for a while.

Trump is wanting more/deeper cuts.

Originally Posted by tsptalk

https://www.cnbc.com/2020/03/02/dow-...ack-rally.html

This move is SO stupid.

The Coronavirus is NOT a demand side issue. Its a supply side issue...namely production in China which powers the entire global economy...with huge added ripple effects in world travel, thus global business.

Rates being lower has no impact on those shutdown cities in China, and now even parts of Europe, nor the fear of what it might be 5 days, or 5 weeks from now. Not going to change anyone's mind of keeping factories open, or traveling anywhere.

The market realized this, and instantly used it as a "sell" opportunity. The equivalent of the Fed using a third of its ammo to shoot guns into the air, just to make some noise, like an Afghan wedding.

SP.jpg

It was another good day to be in the F Fund though.

Markets now pricing in a 100% chance of .5-.75% cut on 3/18.

fedfunds032020.JPG

https://www.investing.com/central-ba...d-rate-monitor

I think thats expected a cut TO 0.5% - 0.75%, not OF 0.5% - 0.75%. Which would be another 0.5 bp cut from where we currently are, 1.00 - 1.25 %.

Originally Posted by Bullitt

Markets now pricing in a 100% chance of .5-.75% cut on 3/18.