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All year all anyone has heard is the Fed and its rate cuts. Soft landings imply a little weakness but no worry, Jay Powell will cut rates once maybe twice and everything will be just fine. The only question is, why on earth does anyone believe this? The evidence and history of interest rate targeting - as you'll see - is indeed 100%, as in total failure. Rate cuts (like hikes) are pure superstition. Eurodollar University's Money & Macro Analysis EURODOLLAR UNIVERSITY'S LIVESTREAM NEXT TUESDAY, 7/23 btw 6 - 8 pm ET EURODOLLAR UNIVERSITY'S ANNIVERSARY SALE: https://www.eurodollar.university PBS Is the Fed going to cut interest rates? What was once a question of ‘when’ is now less certain https://www.pbs.org/newshour/economy/is-the-fed-going-to-cut-interest-rates-what-was-once-a-question-of-when-is-now-less-certain Morningstar We Expect GDP Growth to Weaken Until Fed Starts Cutting Interest Rates https://www.morningstar.com/economy/we-expect-gdp-growth-weaken-until-fed-starts-cutting-interest-rates FOMC Transcript March 1991 https://www.federalreserve.gov/monetarypolicy/files/FOMC19910326meeting.pdf Remarks by Chairman Alan Greenspan Rules vs. discretionary monetary policy At the 15th Anniversary Conference of the Center for Economic Policy Research at Stanford University, Stanford, California September 5, 1997 https://www.federalreserve.gov/boarddocs/speeches/1997/19970905.htm https://www.eurodollar.university Twitter: https://twitter.com/JeffSnider_EDU |