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FED rate cut


Jon Steeler

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I think you may be right here Jon. Something seems off and I have been questioning as to why the FED saw fit to cut rates by 50bps rather then 25. 

Is it that the infection rate in the US is suspected to increase rapidly or maybe there are some other economic worries that I am missing. Either way I think the large cuts suggests that they see quite a large risks to the market. While equities did spike up a bit after the news, they ultimately started to sell off and we have seen them hold around the same level today.

I think the cut by the FED was a temporary solution and we will see a further sell off as you say. I'm not predicting recessionary conditions but I think we will see further downside here. 

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