📈 Emergency Rate Cut?

Will Powell cut rates after market panic?

Emergency Rate Cut?

There is speculation that Powell will schedule an emergency rate cut, even after holding rates unchanged just last week.

This comes after Non-Farm Payrolls data came in much lower expected and the market tanked.

This is really important to understand because it marked the first time in which bad news was treated as bad news. Prior to this, bad economic data was bullish because it meant rate cuts were coming. Now investors think Powell has waited too long and we are descending into a recession.

As you can see from the chart above, we have a high probability of a 75 point cut by the end of the year, and a little over 1/4 chance of a 100 point cut.

I explain what this means for the stock market here: