Analyst John Kemp has spotted that investor are expecting sharp cuts in US interest rates over the next two months:
John Kemp (@ JKempEnergy)
U.S. INTEREST RATE traders are anticipating the Fed will cut its target by (basis points by Apr to reduce the risk of a coronavirus-induced recession: pic.twitter.com/VTt0230 sj 66
:
Policymakers might be relieved to see
But there are more important things in life than the stock market – the G7 should be more focused on protecting the wider economy.
(Vitor Constâncio , (former ) Vice President of the European Central Bank, has tweeted about this – pointing out that just (one in three) market corrections led to a recession.
Vitor Constâncio (@ VMRConstancio)Big variance in predictions about the virus and its economic impact. For The Economist “.. – % of the population of Any infected country may catch the disease … Across the world, the death toll could be in the millions. ”… we could have a global recession. / 1
March 3,Vitor Constâncio (@ VMRConstancio)Vitor Constâncio (@ VMRConstancio)There are milder forecasts, depending on (difficult) containment success by the 81. Countries already infected. For the economy, the supply and demand shocks are quickly conflating. Supply-side policies to help preserve vital supply-chains and demand stimulus are necessary / 2
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