In the very same statement announcing the interest rate cut, the Fed says “The fundamentals of the U.S. economy remain strong”…
Yield on the 10-Year Note has fallen below 1.0% for the first time, ever:
Now inverted, once again, with the just cut Fed Funds Rate.
The rate cut provided a temporary boost to the stock “market”:
Have we reached the point where additional doses of stimulus prove fatal?
Gold has held it’s rate cut gains:
The dollar index, however, is not very happy.
(Silver Doctors Editors) Well, the Fed has cut rates.
Apparently, if ye asks today:
….paying higher rates than many others, when we should be paying less. Tough on our exporters and puts the USA at a competitive disadvantage. Must be the other way around. Should ease and cut rate big. Jerome Powell led Federal Reserve has called it wrong from day one. Sad!
— Donald J. Trump (@realDonaldTrump) March 3, 2020
Ye shall receive.
Statement from the Federal Reserve:
The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity. In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate by 1/2 percentage point, to 1 to 1‑1/4 percent. The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Loretta J. Mester; and Randal K. Quarles.
For media inquiries, call 202-452-2955.
Gold & silver spiked on the news:
The dollar index dropped and the Dow popped: