The Fed will cut tomorrow and likely it will not be enough to satisfy Trump or those looking for shock-and-awe.
Somehow the Fed went from auto-pilot hikes and balanced sheet reduction, to wait-and-see, then to numerous Fed governors discussing the need not for one cut but more.
Just Do It
Former Fed chairs are also in on the "Just Do It" mantra.
Janet Yellen
Former Fed Chair Janet Yellen chimed in.
“The United States isn’t an island. We’re part of the global economy. What happens in the rest of the world — in Europe, in Asia — affects the United States." —Janet Yellen, former Federal Reserve Chair https://t.co/yXSQkOyEzp via @cnbc
— The Aspen Institute (@AspenInstitute) July 29, 2019
Greenspan Wants Insurance
— Sebastian Sienkiewicz (@Amdalleq) July 30, 2019
Data Dependent?
What the hell happened?
The only data that supports a rate cut is the yield curve itself.
Insurance?
The notion that a rate cut offers insurance against anything is total silliness.
The bubbles have been blown. One cannot insure against what has already happened.
Nor will an extra 25 basis points stop a recession. It's already baked in the cake.
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