The Matrix, an array that displays alignment of price & volume (trends) within the cycle of TIME, intermarket money flows, and the flow of sentiment, helps subscribers recognize the Evolution of the Trade for 44 markets. Markets include #stocks, #bonds, #forex, #Bitcoin & #Commodities.
The Fed cut the fed funds rate 25 basis points this week. The follow up Q&A characterized the rate cut as a mid cycle adjustment, but it included a warning that the easing cycle may be coming to an end. This commentary worried some and the President whom tweeted that the Fed and not China was the true enemy. He's been calling for additional rate cuts even since the Fed started cutting rates.
Why the Fed continues to cut interest rates despite few signs of an economic contraction in the economic data. The Fed is central banker to the world. The liquidity crisis within Europe's banking system is getting worse. European banks are loaded with "toxic" debt. Toxic debt has no market and value. Unlike the US, the EU did not use a large taxpayer bailout to remove toxic debt from balance sheets after the 2008 financial crisis. The EU instead cut rates and hoped banks could grow their way out of trouble, because a taxpayer bailout would have moved money from the north to south. This was unacceptable to countries like Germany.
The growth solution did not work. The toxic debt has not gone away and balance sheets are deteriorating fast. European banks no longer trust each other, so short-term inter bank lending has almost dried up completely. The Fed as the central banker of the world has been forced to provide the necessary liquidity to prevent a collapse through REPO market operations.