2024-04-12 03:30:00 ET
Summary
- Equity and junk debt markets have once more priced out any possibility of economic weakness.
- US and Canadian central banks have held base rates in the banking system above 5% - the tightest level in 17 years.
- Inflation and growth readings have seen no such surge in Canada, China and the Eurozone.
Four months ago, Fed Fund Futures had priced in the expectation of 6 to 8 US rate cuts (150 to 200 basis points) by the end of 2024. Today, that expectation has retreated to just 40 bps, with a 17% chance of a 25 bp cut in June, down from 50% on Monday....
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Easy For Some, Harder For Most