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One Big Reason Powell Won’t Cut Rates Anytime Soon
Since the start of the year, markets have moved back into Everything Rally mode. Stocks, bonds of all colors, gold, palladium, bitcoin — it's all up, and it's all predicated on easy central bank monetary policy. That's the story at least. The spread of coronavirus and expected subsequent economic impact has investors once again expecting the Federal Reserve to lower rates. The bond market is pricing in slightly more than one rate-cut by year-end, with a 55% chance as of writing that the first one happens as early as the June meeting. Apple's warning this week sent the probability of a move in June to above 60%. ... (full story)