Now that the currency traders have weighed in on the Fed Cut, perhaps a rate cut is not the salve many are hoping / begging for.
With Oil breaking $80 today, and Gold scoring higher, the question before the house is as follows: What are the repercussions of more rate cuts? If the Fed does take rates down to 4.25%, or even 4.0%, what happens to the following:
-US Dollar, Euro, Yen
-Real Estate (global)
-US Equity Markets
-Soft commodities (Wheat, Corn, etc.)
Two articles might be relevant in coloring your discussions:
What say ye?
please steer clear of politics and ad hominem attacks . . . PLAY NICE
Directly on point with our last post on NILFs and the labor participation rate, David points us to this delicious econ-wonk chart (below). It shows the relationship between a declining Employment Population Ratio, and subsequent recessions: Fascinating chart — thanks for the pointer, Dave, and thanks Adam for the chart! > Source: EM-Ratio — What,…Read More
Because of the office move (broadband gets hooked up today tomorrow), I have been a few days behind in tearing apart major releases. Yesterday, we gave the business to last week’s Back-to-School sales data, which was weaker than it appeared. We previously noted the many different ways BLS measures and reports unemployment (A Closer Look…Read More