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Late on Monday, after the worst one-day rout for US stocks in years when most of the Mag7 names slumped into correction (and some like TSLA cratered down 50% from their recent all time high), we joked tongue-in-cheek that while equities were blowing up left and right, so far the biggest catalyst for Fed intervention, credit, had barely budged.
Good news: amid the stock rout, credit refuses to budge, which indicates the economy remains stable
— zerohedge (@zerohedge) March 11, 2025
Bad news: credit refuses to budge, which means the Fed won't do jack
Which is a key point, and one which Goldman FICC trader Abel Elizalde makes in the bank's latest Credit Market Strats note (available to pro subscribers), in which he first analyzes the week's key economic development, namely the economic policy uncertainty from the Biden administration (Tariffs, DOGE-cuts), which sparked the equity selloff.