The unjustified Fed rate cut creates a massive risk aversion reaction. Desperate measures do not generate confidence. Investors perceive Fed knows something nasty about the economy if they decide to make a surprise cut when the macro, jobs and inflation data is “solid”. pic.twitter.com/pfSsTZr8ij
— Daniel Lacalle (@dlacalle_IA) March 3, 2020
Bloody f*king hell! 😬#repo #crisis @elinalepomaki @anttironkainen @ahokasjaj @samimiettinen https://t.co/WDbl2LcgHa
— Tuomas Malinen (@mtmalinen) March 4, 2020
More 50bps rate cut to fight the slowdown in tourism pic.twitter.com/zDobVflyio
— Alessio (@AlessioTMAD) March 4, 2020
The chart of truth. Every time EFFR exceeds 2Y yield by at least 50bps, equities don't react too well and the Fed cuts. Spread currently at -47bps. Be careful folks.@gamesblazer06 @EPBResearch pic.twitter.com/5wl2mmH45a
— IZ (@siddiqui71) March 4, 2020
The plunge in #10Year #Yields suggests #economic data is about to weaken markedly. Such will coincide with a sharp #reversion in the #Citi #Surprise index. pic.twitter.com/jk4jdQlyE9
— Lance Roberts (@LanceRoberts) March 4, 2020