, Columnist
The Market Puts the Fed in a Bad Position
Cutting like its 1995? Plus, reading ahead on China and exploring the tenor of a trade war.
Jerome Powell may have to do an Alan Greenspan impression.
Photographer: Taylor Glascock/BloombergThis article is for subscribers only.
To get John Authers' newsletter delivered directly to your inbox, sign up here.
The market expects. President Donald Trump’s threat to impose tariffs on Mexican imports has come and gone, but the market remains convinced that the prospects for the Federal Reserve have changed utterly in the last two weeks. If the fed funds futures market is to be believed, the odds now favor three 25 basis point cuts between now and the end of the year. Nobody gave such an outcome the time of day until a few weeks ago: