economy Markets

Two Key Recession Risks Aren’t Flashing Red – Ironically, Fed Cuts May Change That

Oh, the irony.

Oh, the irony.
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5 comments on “Two Key Recession Risks Aren’t Flashing Red – Ironically, Fed Cuts May Change That

  1. Hey lets face it a 1/4 point cut is not going to cause Armegeddon. Central banks set rates usually as an iterative process. FOMC probably should not have raised rates 4x in 2018. The one or two cuts they make in the next 6 months basically unwind the one or two increases they should not have made in 2018. Goldman has been wrong about the direction of interest rates, as most analysts. There was also absolutely no economic reason for Q.T. – cutting the balance sheet was a response to a hostile Congress. When you combined QT with rate increases, it is highly likely policy got too tight.

    • Yeah, but a quarter point increase or no cut would cause the market to Tank.big time….So what does that tell you about stability or the strength of this economy ????

  2. I wonder to what extent this now-longest expansion in U.S. history is demographically driven? That is, boomers, the largest cohort in U.S. history (since surpassed by millennials) and (in theory, at least) a wastrel live-for-tomorrow generation, are working and investing like crazy as they approach retirement age because..well, they have to. And with the median-age boomer scheduled to hit 66 (full Social) in 2030, could we be looking at three-plus years of continued expansion followed by a long, slow, twenty-year grind down?

  3. monkfelonious

    Your cover art is getting better and better.

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