The market is projecting a 50bps Fed rate cut now! - Part 2.

The market has gotten it right! The US Fed cut its rates by 50bps but this cut underlies a deeper problem (economic slowdown).

https://sg-stock.blogspot.com/2024/09/the-market-is-projecting-50bps-fed-rate.html

However, this significant rate cut is a testament that the US economy is in a dire strait because this action proves that the US has been fudging its economic data. We've also highlighted this fudging previously (See below).

https://sg-stock.blogspot.com/2024/09/is-us-fudging-its-gdp-growth-lets-look.html

Furthermore, the US Fed has indicated another 2 interest rate cuts (see the dot plot chart) this year which indicates an economic slowdown.

Economist, Peter Schiff, also issued an economic warning after the Fed's 50bps cut.