Inversions Despite Surprise Cut: More Cuts Coming

March 3, 2020 | Inversions Despite Surprise Cut: More Cuts Coming

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

This morning the Fed made an emergency 50 Basis point rate cut. More are coming.

Note: The Effective Fed Funds Rate of 1.090 is my guess. The New York Fed will post it tomorrow.This morning I commented Fed Makes Surprise Inter-Meeting 50 Basis Point Rate Cut.

Strong inversions and Fed Fund Futures were the key to understanding why the Fed would jump 50 basis points.

Guess what. Even after that emergency inter-meeting cut, the yield curve is still inverted.

The Fed is under pressure to cut again.

Mike “Mish” Shedlock

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Mike 'Mish' Shedlock March 3rd, 2020

Posted In: Mish Talk

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March 3, 2020 | Inversions Despite Surprise Cut: More Cuts Coming

Mike 'Mish' Shedlock

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