Bond Market Screams for More Rate Cuts: Trump Policies Ensure They Come

Ahead of the FOMC announcement the 10-Year to 1-Month spread was +2.2 Basis Points. The spread is now -27.5 BPs.

Comments (18)
No. 1-10
2banana
2banana

Did Trump "want" any of the eight rate increases from the Fed since he was elected?

Did Trump "want" the Great QE to commence the minute he was elected? To the tune of $700 billion being removed from circulation so far?

Yes these things happened.

Seems like the Fed found its "independence" the minute obama left office.

I am sure it was just a coincidence.

abend237-04
abend237-04

CFOs in many corporations are growing restless for the kitchen sink quarter that a recession provides. For them, help is coming.

Many more CFOs are essentially financial caretakers for zombie firms, working business plans that can only survive with free capital. They're slouching from quarter to quarter, waiting for the chapter 7 bullet in their corporate heads. It's coming for them, too.

What a mess central banks, and the politicians that manipulate them, have brought to capitalism, which will now be blamed for the coming carnage.

AWC
AWC

We seem to be doing 90 miles an hour down the dead end street of a liquidity trap.

thimk
thimk

well said - , rate repression/cronyism gives capitalism a bad rap. Look at the swing to the left .

thimk
thimk

excuse my ignorance , but what is the underlying investor rational that causes the curve inversion phenom ? the why component . much obliged .