 |
| Jerome Powell, Chair of the Fed |
See https://www.zerohedge.com/news/2019-06-26/libor-now-inverted-rate-cuts-arent-going-be-insurance-they-are-alarm-bells
Last week, for the first time since February 2008, the LIBOR curve inverted. It’s another sign of imminent rate cuts. I am somewhat reluctant to point out how it was on August 9, 2007, when this same thing happened for the first time last time around. Authorities are being pulled kicking and screaming in a direction they absolutely don’t want to go.
I've said this before. I think the Fed should ignore all the signals and hold steady. It could cause stocks to drop, but they are too high anyways. An interest rate of 2.35% isn't that high. If the Fed caves in to the bond vigilantes, then it will only encourage them, and they will want more rate cuts. Don't feed the trolls!
If the Fed cuts rates on July 31, then it will cause a recession about 3 months later. There is no need to cut, even though everyone in the world thinks there is 100% chance of a rate cut on July 31, and a 92% of at least two rate cuts by December.
Don't do it. Jerome Porter, you are our only hope. Save us from the financial terrorists who want to destroy our economy. Don't push the button, don't cut rates. If you do, the destruction it causes will all be your fault.
Update:
An "insurance rate cut" in July could not only prove a policy mistake, but further erode Powell's credibility and the Fed's.
No comments:
Post a Comment