"The Fed lowered its target rate range by half a percentage point, to 1.00% and 1.25%. It said “the fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity.” All members of the FOMC were on board with the easing."
The economy is strong yet they cut rates? If the economy slows down just a little bit this is how hyperinflation starts. The Fed doesn't even know if the economy has slowed/is slowing and they cut interest rates (they know).
The Federal Reserve has been doing this thing called repo and reverse repo. Not to mention the 21% corporate tax rate. All of this
just fuels buybacks/dividend increases.
Repo and Reverse Repo Operations - Federal Reserve Bank of New York
Can't wait for Q1 numbers and guidance from companies. The market wants 0% rates, and with Trump they might get it. Hell, he's on Twitter saying a 50 bps cut isn't enough; "The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!"
This is a hand grenade with the pin pulled.