PANCAKING THE CURVE…

If you’re trying to visualize today’s move from the Fed then look no further than the Fed Funds Futures curve.  Just 24 hours ago the curve was a full 25 bps higher than today.  This move was the equivalent of a rate cut.  Unfortunately, rate cuts stopped working about 2 years ago….

Nonetheless, the change in the curve shows just how much expectations have changed in 24 hours.   The Fed has essentially pancaked the yield curve:

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Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.

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