CHART OF THE DAY: Can The Fed Eliminate Economic Gravity?

06/24/19 08:43AM EDT

Editor's Note: Below is a brief excerpt from today's Early Look written by CEO Keith McCullough. Click here to learn more about the Early Look.

As we close out Q2 of 2019, a Quad 3 in Q2 week it was. I know, I know… lots of people would prefer if we don’t do the Quad 4 in Q3 summer-thing. I guess a credible market case is being made that the Fed can eliminate that type of economic gravity.

What does a successful Quad 3 rate-cutting Fed look like in macro market terms?

  1. Down Dollar
  2. Down Rates
  3. Up Oil, Commodities, and “Stocks”

Unlike in May (and during Quad 4 in Q4 of 2018), that’s what we had last week with markets pricing in a 100% probability of a PE Powell summer-time rate cut in July.

CHART OF THE DAY: Can The Fed Eliminate Economic Gravity? - Chart of the Day 6 24 19

CHART OF THE DAY: Can The Fed Eliminate Economic Gravity? - early look

© 2020 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.