Fed cuts 0.75 bps, FOR OCTOBER. Now let’s cut for November and December
Why couldn’t the Fed cut by 0.5 or 0.75 back on October 31st? Wasn’t hard to see the train coming at ya, even a nobody like me saw it coming, you’re telling me the Chair at Princeton’s Economic Department couldn’t? Great, we’ve finally caught up to October now. If we get a 0.5 or 0.75 at the meeting at the end of January, maybe we can get to where December 2007 should’ve been, and the market calms down for a while. But just look at where the 2-yr notes are! 2.04%! That’s a full 1.5 cuts that the market says it needs now. Ok, build in some panic and call it a 2.25 or 2.5% yield on the 2-yr just to catch up to the current environment. Let the Fed funds bullets fly Ben. Shoot them now while we’re still alive.
