Update to Our Outlook For U.S. Monetary Policy -- FOMC to cut rates 100 bps

davfor

This is the sort of thinking that is accompanying and contributing to the dramatic recent drop in treasury rates.

.....there are three channels through which U.S. real GDP growth could downshift, at least in the next few quarters.

First, slower growth in countries that have been affected by the outbreak will exert headwinds on U.S. export growth. Second, as we have written in a number of reports in recent weeks, the U.S. supply chain could be adversely affected by output stoppages in other countries. Third, financial conditions have tightened significantly over the past week or so (middle chart). Not only has the stock market swooned, but corporate bond spreads have pushed wider. If the selloff in capital markets is sustained, banks could eventually tighten lending standards for businesses and households.

Consequently, we now look for the FOMC to cut rates 100 bps by the end of Q2-2020 (bottom chart).

https://fxstreet.com/analysis/update-to-our-outlook-for-us-monetary-policy-202003021638

Crash

Jefferson Airplane. "When logic and proportion have fallen sloppy dead..."

davfor

@Crash So that's what that line says! I listened to that song dozens (hundreds?) of times back in the day -- I lived in San Francisco and Berkeley for a couple of years during that era -- but never quite heard it clearly. By the way, your link has been blocked by the link police. Here is a youtube link without the pretty picture:

https://youtu.be/EUY2kJE0AZE

davidrmoran

yeah, feed your head

Crash

davfor said:

@Crash So that's what that line says! I listened to that song dozens (hundreds?) of times back in the day -- I lived in San Francisco and Berkeley for a couple of years during that era -- but never quite heard it clearly. By the way, your link has been blocked by the link police. Here is a youtube link without the pretty picture:

https://youtu.be/EUY2kJE0AZE

And @davidmoran
Remember what the doormouse said!
THANK you for the GOOD link! I also like Grace Potter, still with the Nocturnals, doing it, too:

Crash

WMG sucks pus from rotten snails, cooking in the sun. That scumbag outfit does that stuff a LOT. And I got news for them: "intellectual property" is imaginary property.