FAST FIVE: Rate-Cutting Fed Warns That Prolonged Rate-Cuts "Increases Vulnerability Of Market To Shocks"
Rate-Cutting Fed Warns That Prolonged Rate-Cuts “Increases Vulnerability Of Market To Shocks” Oh, the irony.
The Fed has just released its twice-yearly Financial Stability Report and it is full of two things – ominous warnings.
Treasury securities are more aligned with historical norms for most markets .
Leverage in the financial sector.
“It tends to disappear when it is needed the most, when asset price volatility is high.” The Fed touches on the repocalypse problem, but again the tone is one of “problem solved”.