Market Expects Emergency Rate Cut by the Fed On Monday Morning

by Mike ‘Mish’ Shedlock
Mish Talk

Jim Bianco at Bianco Research makes a case for an emergency rate cut and a recession.

Emergency Rate Cut Expected

Please consider the Market is Expecting The Fed to Cut 50 Basis Points Tomorrow Morning

Since January 2001, all inter-meeting Fed moves come between 60 to 30 minutes before the NYSE open. So the market is expecting it tomorrow morning.

Why is the market expecting a 50 bps cut tomorrow? It will be starting a rate-cutting campaign that will take the funds rate under 50 bps by the end of the year (see December 2020 futures above).

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