What will the FED do?
The stock market is churning higher but the Federal Reserve is considering a rate cut?!?
(which is typically reserved for when the economy is cooling off)
WHY?
From the the DailyShot here is the case for and against rate cuts by the Fed
The case for:
• Manufacturing recession
• Tumbling inflation expectations
• The inverted yield curve
• A strong US dollar
• Global economic uncertainty
– The case against:
• The stock market near records
• Elevated risk appetite (tight credit spread, etc.)
• Extremely low unemployment rate (below the longer-term sustainable levels)
• Improving global leading economic indicators
• Relatively stable underlying inflation rates
What do you think they will do?
Jared S. Friedman
