READ THE ENTIRE GAME OF TRADES POST HERE!
The Fed is making the WORST policy mistake since 1929.
This is not going to end well.
A thread.
2/ The Fed has held interest rates steady for the past 12 months.
This last happened right before the 2008 Financial Crisis.
At that time, Fed Chair Ben Bernanke expressed regret for not cutting rates sooner.
3/ Back then, the Fed kept short-term rates above the economy's neutral rate.
Resulting in tight monetary policy.
This restrictive stance persisted until the recession began in Dec 2007.
Marking 1.5 years of economic pressure.
4/ Interestingly, this wasn’t the first time the Fed made such a mistake.
In the late 1920s, they also kept rates too high for too long.
Contributing to the onset of the Great Depression.
In hindsight, the Fed acknowledged they should have acted sooner.
CONTINUED…