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On March 18, the Fed meets again. The market implies an 80.7% chance of another 50 basis point cut.

I agree.

Bit of Sarcasm

Deflation Coming Up

The Fed is acting as if it fears deflation. I believe it's baked in the cake.

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As noted a bit ago Supply Shock and a Demand Shock Coming Up

Worth Repeating

Deflation is not really about prices. It's about the value of debt on the books of banks that cannot be paid back by zombie corporations and individuals.

That is what the Fed fears. It takes lower and lower yields to prevent a debt crash. But it is entirely counterproductive and it does not help the consumer, only the asset holders. Fed (global central bank) policy is to blame.

These are the important point all the inflationistas miss.

Mike "Mish" Shedlock