This is what a 50 bps cut this week would look like in comparison to the US 2Y. #fed #FOMC

If they cut only 50 bps, be prepared for 50 or more next meeting.

Reply to this note

Please Login to reply.

Discussion

Translations for normies (like myself) who have barely a clue of what is said in this post:

The message is discussing a potential interest rate cut by the Federal Reserve (often referred to as the "Fed") and its implications. Here's a breakdown:

- **50 bps cut**: "bps" stands for basis points, where 100 basis points equal 1 percentage point. So, a 50 bps cut means a reduction of 0.50% in interest rates.

- **This week**: The context suggests that the Fed is expected to make a decision regarding interest rates in the near future.

- **Comparison to the US 2Y**: This likely refers to the yield on the 2-year U.S. Treasury note, which is often used as a benchmark for short-term interest rates and reflects market expectations about future interest rate changes.

- **#fed #FOMC**: These hashtags refer to the Federal Reserve and the Federal Open Market Committee (FOMC), which is the body that makes decisions about monetary policy, including interest rates.

- **If they cut only 50 bps**: The author is suggesting that if the Fed decides to cut rates by 0.50%, it may indicate a cautious approach.

- **Be prepared for 50 or more next meeting**: This implies that if the Fed cuts rates by 50 bps this time, there may be further cuts (50 bps or more) in the next meeting, suggesting a trend of aggressive monetary easing.

Overall, the message conveys a concern that a modest rate cut now could lead to more significant cuts in the future, indicating a potentially worsening economic outlook.

nostr:note1ly6smprld0wzxp8rtnxxydvxah0sns654hv4g93k2jmvd42deu4ss9hm3u