The Fed “Train” Is Leaving The Station: Destination Unknown -

The Fed “Train” Is Leaving The Station: Destination Unknown

Sep 16, 2024Jeremy ParkinsonFinance, No picture0

Image Source: UnsplashThe markets are pricing in the first rate cut in more than four years. As of this writing, it looks like we can expect a 50-basis-point cut on Wednesday, with a 50% probability of a 1.25% cut by December.That’s fast… but what’s the hurry? Is the Fed that desperate to accommodate the mountain of T-bill debt the Treasury will roll over in the coming year? Treasury Secretary Janet Yellen made a big bet that the Fed would cut this year when she directed the Treasury to issue T-bills over bonds and notes.The Fed has a “mountain” of its own to contend with – unrealized losses they’re holding onto.We need to ask ourselves two questions (at least!): Are they sprucing up the balance sheets’ appearance by cutting rates? Or are we peeking over the edge of an economic precipice?That’s what we’ll answer in tonight’s video – all the answers. Naturally, we’ll look at bonds, gold, and, importantly, bank stocks.Let’s get right to it…Video Length: 00:18:57More By This Author:Market MusingsThe “Return Of Inflation” And How To Profit From It Volatility Is Alive And Well