Cleaning up my previous tweets into one thread
About 30 minutes ago, Fed Chair Jay Powell released an unscheduled statement.
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About 30 minutes ago, Fed Chair Jay Powell released an unscheduled statement.
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federalreserve.gov/newsevents/pre…
(Highlights)
* Fundamentals remain strong.
* Covid-19 poses evolving risks.
* Fed is closely monitoring developments and their implications for the economic outlook.
* We will use our tools and act as appropriate to support the economy.
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(Highlights)
* Fundamentals remain strong.
* Covid-19 poses evolving risks.
* Fed is closely monitoring developments and their implications for the economic outlook.
* We will use our tools and act as appropriate to support the economy.
(2/4)
Jun 4, 19 speech Powell inserted a line to say the Fed would "act as appropriate." This was taken as a sign that the Fed would cut, and they did on Jul 31.
Using "act as appropriate" again means they WILL BE cutting by Mar 18.
Only question, 25 or 50.
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Using "act as appropriate" again means they WILL BE cutting by Mar 18.
Only question, 25 or 50.
(3/4)
The market certainly responded. It shot the probability of a 50 basis point cut by the March 18 FOMC meeting to 77%.
Or they cut 25 inter-meeting next week, and 25 on March 18.
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Or they cut 25 inter-meeting next week, and 25 on March 18.
(4/4)
Bonus!
If they are really the central bank of the S&P 500 (trump thinks so!) today's statement is perfectly consistent with this idea.
If the market slumps and closes on the low ... expect coordinated central bank statement Sunday night and an ease Monday morning.
If they are really the central bank of the S&P 500 (trump thinks so!) today's statement is perfectly consistent with this idea.
If the market slumps and closes on the low ... expect coordinated central bank statement Sunday night and an ease Monday morning.
