Turnaround Jay! One Small Rate Hike Expected In May, Then A Turnaround With Fed Rate Cuts To 4.28% (Too Bad Taylor Rules Calls For A Target Rate Of 10.29%)

Turnaround Jay!

Fed Funds Futures are pointing to one more rate hike at the May FOMC meeting, then a turnaround with The Fed cutting its target rate.

Too bad the Taylor Rule is calling for a target rate of 10.29%.

The Fed Funds Target rate (upper bound) is STILL negative at -1.0356%.

Soaring rates to fight inflation is causing unrealized losses to plague US banks.

Like the film, “He Never Died”, The Fed never died. And neither did quantitative easing.