Morgan Stanley expects a -0.4% GDP in the second quarter in the U.S…The market is expecting the Fed to start cutting rates very soon… Fed’s Goolsbee: I’m getting the “vibes’ that a credit squeeze is beginning.

Morgan Stanley expects a -0.4% GDP in the second quarter in the U.S. pic.twitter.com/Ksns6UdD2N

— Daniel Lacalle (@dlacalle_IA) May 8, 2023

The market is expecting the Fed to start cutting rates very soon pic.twitter.com/cGkUvk3vil

— Genevieve Roch-Decter, CFA (@GRDecter) May 8, 2023

FED'S GOOLSBEE: I'M GETTING THE “VIBES' THAT A CREDIT SQUEEZE IS BEGINNING.

— Breaking Market News (@financialjuice) May 8, 2023

Federal Reserve Alert! Chicago Fed President Austan Goolsbee at 1:44 says: “I am certainly getting vibes… that a credit crunch or credit squeeze is beginning’. Adds it will be some time before next interest rate decision, with jobs and credit the determining factor for raising rates or not.

New 60-month car loan rate up 2% in 6 months, highest on record. pic.twitter.com/wStiiniBzE

— zerohedge (@zerohedge) May 8, 2023

Capital One's $2.8 billion in credit loss provisions, up 313% YoY and the highest since the covid crash, screams 3.4% unemployment rate.

COF is the biggest credit card issuer to middle-class Americans. pic.twitter.com/Lg5f8Z7n06

— zerohedge (@zerohedge) May 8, 2023

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twitter.com/TheChiefNerd/status/1655481978978816000

SLOOS Finds Even Tighter Credit Standards, A Collapse In C&I Loan Demand, And A Dire Outlook For Rest Of 2023

Three months ago, back in February, we had already warned that the Q4 “Fed Loan Officers Paints Dire Picture: Loan Standards Approaching Record Tightness As Loan Demand Plummets.”