US Fed - less cuts to come - “wannabe” but “won’t be” macro forecasts - and fudging the equilibrium rates question.
#US#Central Banks#US Fed#Chairman Powell#Euro#FOMC#US Federal Reserve#US$#JPY
US Fed. Cut as expected = 25bp. One dissent - Beth M. Hammack. Less cuts to come. Positive for US$ Vs EURO & Yen. “Wannabe” but “won’t be” macro forecasts - and fudging the equilibrium rates question. But this piece explains why US equilibrium Fed Fund Rates is 4%. US Fed won't cut policy rates much below that. Expect that to heft long rates and steepen the yield curve. Equity markets and speculative assets will suffer from no more spoon feeding of cheaper rates.