What Happened to the Data-Dependent Fed?
Somehow the Fed went from auto-pilot hikes and balanced sheet reduction, to wait-and-see, then to numerous Fed governors discussing the need not for one cut but more.
Just Do It
Former Fed chairs are also in on the “Just Do It” mantra.
Former Fed Chair Janet Yellen chimed in.
Greenspan Wants Insurance
What the hell happened?
The only data that supports a rate cut is the yield curve itself.
The notion that a rate cut offers insurance against anything is total silliness.
The bubbles have been blown. One cannot insure against what has already happened.
Nor will an extra 25 basis points stop a recession. It’s already baked in the cake.
Mike “Mish” Shedlock