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.
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
Bernanke … paging Dr Ben Bernanke …
uh, can we have your instruction manual on this QE contraption?
Lessons that Bernanke learned (the hard way) – Mr Market does NOT like limit on $$s or duration. Massive amount of $$s till forever will do … or not.
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You can always count on Americans to do the right thing – after they’ve tried everything else.
Winston Churchill