the cut is inexplicable based on economic data and a fiscal policy that remains out of control. So Powell has basically sent a cryptic message to the markets: either there is a rat, or more, in the private system (regional banks balance sheets, CRE, whatever else) or the economic figures published by the administration are cooked (something that to some extent even some reasonable people have doubts about) or a mix of both. the risk management approach would have maybe justified 25bps....
I think “calibration” referred in his remark means get to normal that is fed should match the inflation rate ? Current fed rate is 5.50-5.75 and the most recent inflation (I do not trust that number) read was 3.1% ?
the cut is inexplicable based on economic data and a fiscal policy that remains out of control. So Powell has basically sent a cryptic message to the markets: either there is a rat, or more, in the private system (regional banks balance sheets, CRE, whatever else) or the economic figures published by the administration are cooked (something that to some extent even some reasonable people have doubts about) or a mix of both. the risk management approach would have maybe justified 25bps....
I think “calibration” referred in his remark means get to normal that is fed should match the inflation rate ? Current fed rate is 5.50-5.75 and the most recent inflation (I do not trust that number) read was 3.1% ?
Something just isn't right!