Trump Escalating Trade War To Get Stocks To Drop So Fed Cuts Interest Rates Next Week?

How many points does it take to get to a Fed interest rate cut?

Yesterday, in my outlook, I nearly included the CME Group’s probability for a rate cut next week:

The probability of a rate hike has come down since yesterday, but notice the probability of a rate cut!

For over one week now, there has been zero probability of a cut.

Which, in part, explains this Tweet:

Which I wrote about yesterday to little interest.

I guess the Red Hats are still in denial?

Meh.

Doesn’t matter.

What does matter is President Trump didn’t stop with just one call for lower rates:

I can see why the Red Hats are still in denial: President Trump is spitting in the Red Hats faces as he tells them such the bold-faced lie of “there is almost no inflation”.

Nonetheless, check out the stock market since the trade war escalation:

The question is, how many points does it take to get the Fed to cut rates next week?

If the stock market drops enough to get the market thinking “rate cut coming”.

Gold & silver could rise all the way into the cut, and keep on rising!

Which means the next price rally may indeed have begun.

Let’s not get ahead of ourselves just yet, however.

We need to see gold close above $1500.

Gold needs to do that with authority.

Silver needs to take out $18.

And then after that?

Follow through.

Is needed.

Indeed.

It is.

Stack accordingly…

– Half Dollar


 

About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

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