In seeing how foreign markets are reacting, I don’t think the Fed can wait until 6/7 May to meet. I would hedge a bet on an emergency meeting by the Fed to cut rates. It’s happened 7 times in recent history (9/11, Dot Com Bubble, GFCx3, COVIDx2), so all with major shifts in economic policy/practice.
Discussion
U would think, but it seems like JPow doesnt want to back down. Its wild
He’s not going to have a choice. Q4 2024 FDIC report showed American Banks sitting on 3/4 of a trillion dollars of unrealized losses. How much you think they’re down now? When the debt matures, they can’t pay it. Public and private sector are insolvent. No way around it.
Oh I totally agree. I'm just surprised they haven't cried uncle yet. The liquidity is definitely coming, just a matter of will something else have to break for them to act. They had a closed door meeting today so we will see what happens