Nearly 50% Odds of “At Least” 3 Rate Cuts by December

Mike “Mish” Shedlock's Sitka Pacific Capital Management,Llc

In the last month the odds of interest rates cuts by the Fed have soared.

June Rate Cut Odds

Rate cut odds from CME Fedwatch.

The odds of one cut in June are 44.6%.

The odds of two cuts are 29.3%.

The odds of three cuts are 5.4%

June Changing Odds

A month ago the the odds of No Cut in June were 63.0%.

Today they are only 20.7%.

December Rate Cut Odds

December Changing Odds

In the past month the odds of two or more cuts jumped from 30.3% to 77.7%

In the past month the odds of three or more cuts jumped from 8.4% to 47.2%

What's Happening?

CDC Admits Spread of Coronavirus in the US Appears Inevitable

Lie of the Day: This is Not a Pandemic

Bond Yields Crash and Gold Soars on Pandemic Threat

Fed Minutes Highlight Coronavirus Concerns and Uncertainty 8 Times

Rate cuts odds started rising before coronavirus threat materialized on news Largest Global Shipping Decline Since 2009.

Author

Mike “Mish” Shedlock's

Sitka Pacific Capital Management,Llc

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