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What happens to when the Fed finally cuts rates?

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I love a chart out today from Dario Perkins and MD Global Macro highlighting that there’s no single playbook for reacting to Federal Reserve rate cuts. Assuming that May is the final hike, the next trade will be reacting to cuts.

“When the Fed cut rates, history says the stock market can go up, down, or stay the same. Knowing whether we are in a recession or not can help, sometimes, but not necessarily,” Perkins writes.

What’s notable about 1995 and 1967 is that they were both soft landings.

https://twitter.com/darioperkins/status/1646127327980527617

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