Congrats to Jim Bianco for outright predicting this headline: Federal Reserve Cuts Rates by Half Percentage Point

The Federal Reserve cut its benchmark rate by a half percentage point on Tuesday morning, delivering a booster shot to stem potential economic disruptions from the spreading coronavirus epidemic with its first between-meeting move since the financial crisis.

Tuesday’s cut lowered the federal-funds rate to a range between 1% and 1.25%.

Fed Chairman Jerome Powell at a press conference following the rate cut said the central bank “judged that the risks to the U.S. outlook have changed materially” and that the Fed “can and will do our part, however, to keep the U.S. economy strong as we meet this challenge.”

“We do recognize a rate cut will not reduce the rate of infection, it won’t fix a broken supply chain. We get that,” Mr. Powell said. “But we do believe that our action will provide a meaningful boost to the economy. More specifically, it will support accommodative financial conditions and avoid a tightening of financial conditions which can weigh on activity and will help boost household and business confidence.”

Trump Complaining


On Sunday, I commented Market Expects Emergency Rate Cut by the Fed on Monday Morning

Apologies offered. It was Tuesday morning.

Congrats to Jim Bianco who outright predicted this.

I few weeks ago I suggested the Fed was likely to do this but Bianco confidently predicted they would.

As noted yesterday, a Global Recession Now Baked in the Cake

Mike "Mish" Shedlock

Fed Cuts Interest Rate 3rd Time in 2019 With Hints of a Pause

The FOMC committee decided to lower the target range for the federal funds rate to 1-1/2 to 1-3/4 percent.

Yield Curve and Spreads Ahead of the Fed Rate Cut Decision

Here is the final snapshot of the yield curve and spreads ahead of the first interest rate cut since 2008.

2019 Rate "Cuts" in Play

The market still expects the Fed to hike on Wednesday, but even the 3-Month yield is lower. Let's look ahead to 2019.

Huge Interest Rate Dislocations: Did the Fed Cut Too Much?

A series of charts shows new fed-sponsored interest rate dislocations. Let's dive into the charts.

Market Expects Emergency Rate Cut by the Fed on Monday Morning

Jim Bianco at Bianco Research makes a case for an emergency rate cut and a recession.

Rate Cut Odds Dip Below 50% from 92% a Week Ago

The market has given the Fed a free swing as rate cut odds dip to 47%.

Tweets of the Day: Rate Cut Surprises Don't Produce Miracles

Don't expect miracles, the Fed is clueless, more importantly the top CDC and FDA officials are blatantly incompetent.

Inversions Despite Surprise Cut: More Cuts Coming

This morning the Fed made an emergency 50 Basis point rate cut. More are coming.

Powell Floats "Fed Will Act As Appropriate" Rate Cut Message

Powell issued a rare inter-meeting statement promising to support U.S. economy.