The Fed Cuts by 0.50%

Me a few days ago.

I think there's a good chance of a non-meeting rate cut from the Fed.

Soon.

— Eddy Elfenbein (@EddyElfenbein) February 27, 2020

And today.

Federal Reserve issues FOMC statement

The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity. In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate by 1/2 percentage point, to 1 to 1‑1/4 percent. The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy.

The market rallied. For a bit.

Posted by Eddy Elfenbein on March 3rd, 2020 at 11:06 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.