Displaying items by tag: cut

Thursday, 16 May 2019 10:17

The Odds of a Rate Cut Just Jumped

(Washington)

Between the escalating trade war and weakening data, the economic outlook is darkening. Accordingly, the market is increasingly betting that the Fed will cut rates. The market is now pricing a 50%+ chance of a 25 bp rate cut by the end of the year. Additionally, the yield curve, which is once again inverted, is signaling future rate cuts.


FINSUM: If Trump keeps escalating the trade war with China, he will force the Fed to do exactly what he hopes—cut rates! Really though, the odds of a rate cut are rising as the trade war looks like an ever bigger headwind to growth.

Published in Bonds: Treasuries

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…