The Fed cutting rates as expected yesterday, but markets read a hawkish cut as somewhat dovish. Steve Leeman joins us right now with more on that. And Steve, this was interesting to watch the market's reaction after hearing this and then hearing JPAL speak.>> That was the curious part of it. All went as expected except perhaps the curious market rally that came after. I'll talk about that in a second.The Fed followed through on an expected hawkish rate cut, reducing rates by a quarter point to the new range ...

The Fed cutting rates as expected yesterday, but markets read a hawkish cut as somewhat dovish. Steve Leeman joins us right now with more on that. And Steve, this was interesting to watch the market's reaction after hearing this and then hearing JPAL speak.>> That was the curious part of it. All went as expected except perhaps the curious market rally that came after. I'll talk about that in a second.The Fed followed through on an expected hawkish rate cut, reducing rates by a quarter point to the new range ...

Market Overview - U.S. stock futures declined on Thursday following gains on Wednesday, with major indices showing lower futures [1][2] - The Federal Reserve cut interest rates by 25 basis points to a range of 3.5%–3.75%, marking the third consecutive reduction and highlighting a policy divide within the central bank [1] - The Fed will also resume quantitative easing by purchasing approximately $40 billion per month in shorter-maturity Treasury bills [1] Treasury Yields - The yield on the 10-year Treasury bond was 4.14%, while the two-year bond yield stood at 3.53% [2] - Market expectations indicate an 80.1% likelihood that the Federal Reserve will keep interest rates unchanged in the near term [2] Stock Performance - Major indices showed the following premarket changes: Dow Jones -0.16%, S&P 500 -0.53%, Nasdaq 100 -0.72%, Russell 2000 -0.01% [2] - The SPDR S&P 500 ETF Trust (SPY) decreased by 0.52% to $683.99, and the Invesco QQQ Trust ETF (QQQ) fell by 0.72% to $623.08 [2] Company Highlights - Oracle Corp. experienced a significant drop of 11.01% after reporting mixed second-quarter results for fiscal 2026 [5] - Broadcom Inc. fell by 1.98% ahead of its earnings report, with analysts expecting earnings of $1.86 per share on revenue of $17.1491 billion [5] - Adobe Inc. saw a slight decline of 0.62% despite better-than-expected fourth-quarter earnings, projecting fiscal 2026 GAAP EPS between $17.90 and $18.10 [4][6] - Costco Wholesale Corp. rose by 0.18%, with analysts anticipating earnings of $5.39 per share on revenue of $6.11 billion [5] Analyst Insights - Expert opinions on the Federal Reserve's actions are divided, with some criticizing the resumption of Treasury purchases as a sign of systemic weakness [9] - Michael Burry expressed concerns about the implications of the Fed's actions, suggesting potential fragility in the banking system [9] - Conversely, some analysts remain optimistic about economic conditions, with projections indicating a favorable outlook [9][10] Commodities and Global Markets - Crude oil futures fell by 1.51% to around $57.59 per barrel, while gold prices decreased by 0.21% to approximately $4,219.72 per ounce [11] - Bitcoin traded 2.77% lower at $90,325.90 per coin [11] - Asian markets closed lower, with exceptions in India's NIFTY 50 and Australia's ASX 200 indices, while European markets showed gains in early trading [12]

Market Overview - U.S. stock futures declined on Thursday following gains on Wednesday, with major indices showing lower futures [1][2] - The Federal Reserve cut interest rates by 25 basis points to a range of 3.5%–3.75%, marking the third consecutive reduction and highlighting a policy divide within the central bank [1] - The Fed will also resume quantitative easing by purchasing approximately $40 billion in shorter-maturity Treasury bills each month [1] Treasury Yields - The yield on the 10-year Treasury bond was 4.14%, while the two-year bond yield stood at 3.53% [2] - Market expectations indicate an 80.1% likelihood that the Federal Reserve will maintain current interest rates [2] Stock Performance - Major indices showed the following changes: Dow Jones -0.16%, S&P 500 -0.53%, Nasdaq 100 -0.72%, Russell 2000 -0.01% [2] - The SPDR S&P 500 ETF Trust (SPY) decreased by 0.52% to $683.99, and the Invesco QQQ Trust ETF (QQQ) fell by 0.72% to $623.08 in premarket trading [2] Company Highlights - Oracle Corp. experienced a significant drop of 11.01% after reporting mixed second-quarter results for fiscal 2026 [5] - Adobe Inc. saw a slight decline of 0.62% despite exceeding fourth-quarter earnings expectations, projecting fiscal 2026 GAAP EPS between $17.90 and $18.10 [4][6] - Broadcom Inc. fell by 1.98% ahead of its earnings report, with analysts expecting earnings of $1.86 per share on revenue of $17.1491 billion [5] - Costco Wholesale Corp. rose by 0.18%, with analysts anticipating earnings of $5.39 per share on revenue of $6.11 billion [5] Analyst Insights - Expert opinions on the Federal Reserve's actions are divided, with some criticizing the resumption of Treasury purchases as a sign of systemic weakness [9] - Michael Burry expressed concerns about the implications of the Fed's actions, while economist Peter Schiff labeled the strategy as "QE5" and warned of potential inflation [9] - Conversely, some analysts remain optimistic, with projections of favorable economic conditions [9][10] Commodities and Global Markets - Crude oil futures fell by 1.51% to around $57.59 per barrel, while gold prices decreased by 0.21% to approximately $4,219.72 per ounce [11] - Bitcoin traded 2.77% lower at $90,325.90 per coin [11] - Asian markets closed lower, with exceptions in India's NIFTY 50 and Australia's ASX 200 indices, while European markets showed gains in early trading [12]

Core Viewpoint - The Federal Reserve's decision to cut interest rates and resume purchasing Treasury bills has sparked a debate about the U.S. economy's future, with contrasting views from analysts and economists [1]. Group 1: Economic Perspectives - Economist Peter Schiff warns that the Fed's new liquidity measures represent a dangerous return to quantitative easing, predicting that this policy will lead to rising long-term interest rates [2]. - In contrast, institutional investors express optimism, with LPL Financial's Chief Economist Jeffrey Roach stating that the Fed's actions indicate a successful balance of its dual mandate, leading to a "Goldilocks" scenario for the economy [3]. - Gina Bolvin from Bolvin Wealth Management supports this optimistic view, suggesting the Fed is shifting focus from fighting inflation to managing economic risks [4]. Group 2: Fed's Actions and Market Reactions - The Fed plans to purchase approximately $40 billion per month in shorter-maturity Treasuries to smooth volatility in short-term funding markets, a move that has drawn criticism from Schiff [4][5]. - Bill Adams, Chief Economist for Comerica Bank, notes that the Fed is operating in a "data vacuum" due to delayed economic releases and anticipates a leadership change when Chair Powell's term ends in May 2026 [5]. - Chris Zaccarelli of Northlight Asset Management cautions that the current optimistic sentiment may diminish if investors realize that the path to lower rates is slower than expected [6]. Group 3: Market Performance - The S&P 500 index has increased by 17.35% year-to-date, while the Dow Jones index has returned 13.36%, and the Nasdaq Composite has gained 22.68% in the same period [7]. - The SPDR S&P 500 ETF Trust (NYSE:SPY) closed at $687.57, up 0.66%, while the Invesco QQQ Trust ETF (NASDAQ:QQQ) closed at $627.61, up 0.41% [8].

Economic Outlook - The American economy is not overheating, and there are no immediate signs of a hot economy that would lead to significant inflation [1][2] - The Employment Cost Index (ECI) report suggests that inflation is not being driven by a tight labor market [2][3] Federal Reserve Actions - The Federal Reserve announced a mild quantitative easing (QE) program, starting with Treasury bill purchases, which was above market expectations [3][4] - There is a shift from quantitative tightening (QT) to QE, indicating a more accommodative monetary policy [4][11] Inflation and Tariffs - Powell indicated that the effects of tariffs on inflation are temporary, and if no new tariffs are imposed, inflation could decrease in the latter half of next year [5][8] - The recognition that tariff impacts are one-time increases rather than ongoing inflationary pressures is seen as a positive development [10] Employment Data - Powell suggested that payroll numbers may be revised to show slight negative growth, which aligns with recent ADP data [11][12] - The discussions within the Fed are characterized as thoughtful and respectful, reflecting a range of opinions on monetary policy direction [18] Corporate Engagement - President Trump is engaging with CEOs from major companies like IBM and Qualcomm to discuss the impact of AI on the economy, which Powell acknowledged as beneficial [13]

Hello everyone. The Federal Reserve and Drone Powell, they made their big decision today. The US economy is booming.We got data on why buying all-time high stock prices may actually be a good idea. And Netflix's Ryan Sorant, he unpacks what's happening with home affordability in America. We're live today from the desk of Anthony Pompiano.Before we get into today's episode, I need your help. My goal is to get to 1 million subscribers on YouTube. That's a big, hairy, audacious goal, but with your help, I'm go ...

RT Mayne (@Tradermayne)This isn’t QE lol.Ending QT doesn’t mean QE starts, the Fed can just pause and sit neutral.QE is when they buy long-duration assets in size, usually trillions, to push down long-term rates.Right now rates are still high and markets are near ATHs.The last times QE began, rates were at or near 0% and markets were cooked. ...

RT Mayne (@Tradermayne)These red lines were the last 4 times full on QE happened.Not "stealth QE" or any of that shit. 100s of billions to trillions of buying.Rates at these periods were 0-0.25%. https://t.co/zGQ8Z6Mw4d ...

The inevitable is happening.The infinite money glitch, also known as the printer, is starting up again.The FED is forced to be buying back treasuries & bills to stimulate the economy.The rates will go down.The DXY will become weaker.Risk-on assets should be going up, which means a new ATH for $BTC & $ETH. ...