Despite the confidence in recent Fed-speak (aka, jawboning), a downturn that could lead to a recession may be looming, meaning the central bank’s next step very likely will be a rate cut.
Liquidity moves markets!Follow the money. Find the profits!
The Chicago Fed National Activity index turned negative in February and has stayed there, with industrial production following suit. The index has accurately predicted a downturn in U.S. economic growth for the past 30 years, 3 of 4 times foreshadowing a recession. It’s also predicted the health of the manufacturing industry, preceding changes in production.
Bear in mind that the The Chicago Fed National Activity index was negative in 2013/2015. But The Fed has been RAISING rates as the Chicago Fed National Activity Index has slowed.
Is Ken Snyder the Chairman of the FOMC?
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