Bond market says not only is a recession coming, but the Fed will cut interest rates to stop it

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The bond market doubled down on scary warnings Monday, signaling both a possible recession is looming and that the Fed could have to cut interest rates this year to stop it.

div > div.group > p:first-child"> "People are starting to get fearful," said Andrew Brenner of National Alliance."It won't last for long, but they're getting fearful about a recession. You had a Fed that changed course 180 degrees and then added to it last week. That caught the market off guard."

In another sign of angst, traders were also watching the 10-year yield Monday as it slid below 2.40 percent, about where the fed funds rate is. The 2-year, at 2.24 percent, was well below that level. The Fed Wednesday released a new forecast for no rate hikes this year from two previously, but the market had been already been pricing in six basis points of an ease for this year. After the meeting, it moved to price in 19 additional basis points, or at least one 25 basis point cut this year, according to Hill.

 

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Congrats Jerome you got what you wanted. You started raising rates so you could cut when a recession happened, well your raising is causing the slowdown you wanted so cut away. Wouldn't it have been easier to leave rates alone months ago? You people are book smart,

The FED should get used to doing nothing. They never wait until a move goes through the system. Adjusting once a year if necessary is enough.

To 'TRY' to stop it, but that will not fix consumer DEBT issues that will cause it

Don't think it will stop it by cutting already low rates. QE4, 5 & 6 coming. Communists!!! Wouldn't know a free market if it sledge hammered you in the face.

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