by Mike ‘Mish’ Shedlock
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).