Now the market thinks the Fed could make an even deeper cut to rates later this month

Federal Reserve Chairman Jerome Powell holds a news conference following a two-day Federal Open Market Committee meeting in Washington, June 19, 2019.Like Ben Bernanke and Janet Yellen before him, Federal Reserve Chairman Jerome Powell may be worried that the central bank's use of extreme policy during the financial crisis left him with a relatively small amount of fire power to head off the next economic decline.

"This is a Fed that is data independent.They are not cutting interest rates because of incoming data. They are cutting interest rates because they worry about the future data and they are being pre-emptive," she said. She said the strategy of using some of the few rate hikes the Fed has available to boost the economy, and keep it from rolling over is a gamble.

Specifically, the odds of a half-percentage-point cut by the Fed increased to 59% on Thursday following the Williams talk, up from 35% earlier in the day, according to theJoseph LaVorgna, Natixis chief economist Americas, said Williams comments make it seem as though the Fed would be willing to cut by a half percentage point at its July meeting.

"I think the reason the [U.S.] data looks so decent is because the Fed is going to cut. If the Fed had not pirouetted and pivoted, we would not have seen the improvement," said Diane Swonk, chief economist at Grant Thornton. Now, the Fed has to follow through with a rate cut after its strong signals in order to maintain its credibility.

fed lost his independence, very worrisome

That is why wall st crooks are intentionally lowering the markets so rate cur is justified, imo. Wall st is house of crooks imo

This is what the market is building up to, a big drop in rates followed by a collapse in stocks and a shot up in gold.

Go into minus territory?

If the market is as solid and dynamic as trump brags why in the world should interest rates be cut?

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Source: MarketWatch - 🏆 3. / 97 Read more »