PremiumWhat Can Go Wrong For Markets After A 50bps First Fed Cut? Goldman Answers
This article is so good
it's for premium members only.
Does that sound like you?
Already a member? Sign in.
PREMIUM
ONLY $30/MONTH
BILLED ANNUALLY OR $35 MONTHLY
All BASIC features, plus:
- Premium Articles: Dive into subscriber-only content, market analysis, and insights that keep you ahead of the game.
- Access to our Private X Account, The Market Ear analysis, and Newsquawk
- Ad-Free Experience: Enjoy an uninterrupted browsing experience.
PROFESSIONAL
ONLY $125/MONTH
BILLED ANNUALLY OR $150 MONTHLY
All PREMIUM features, plus:
- Research Catalog: Access to our constantly updated research database, via a private Dropbox account (including hedge fund letters, research reports and analyses from all the top Wall Street banks)
As discussed in detail yesterday, the biggest question ahead of tomorrow's FOMC decision, is whether the Fed cuts 25bps or 50bps, and whereas just a few weeks ago it was conventional wisdom that a 50bps cut would signal that "something is broken", as the following cheat sheet of historical first rate cuts indicates...
... and would result in a negative reaction for risk assets, that narrative quietly flipped on its head in the past few weeks, and now not only is a 50bps is viewed as the base case, but the market hitting an all time high as it prices in 70% odds of a jumbo cut tomorrow.