FYI: Savers and investors can be forgiven if they are suffering from an extreme case of whiplash.
Not long ago, they were counting on higher interest rates after years of near-zero returns on cash. Seemingly overnight, the conventional wisdom reversed. Markets are now betting that interest rates are about to fall for the first time since December 2008.
Federal-funds futures markets are pricing in a half-point cut this year, and another 40 basis points in 2020; a basis point is equal to one-hundredth of a percentage point. The so-called yield curve has also flattened and inverted: Short-term Treasuries are yielding more than 10-year bonds, and there is scant difference between the yield of a one-year T-bill (2.04%) and a 10-year note (2.12%). Historically, that has often indicated a recession is coming, implying that a rescue plan from the Federal Reserve may be on the horizon.
Regards,
Ted
https://www.barrons.com/articles/heres-how-to-prepare-if-the-federal-reserve-lowers-interest-rates-51559898002?mod=past_editions
