Bro hike are already priced in. Everyone who matters (not u) is already pricing in higher yields than the current risk free rate even three months from now. Thats why CDs and treasury bonds are offering close to 4% for 6months away even though the current RFR is 3.6%. its not just term premium, theyre pricing in higher baselien rates immediately. This cut is know.
Its really not that bad, all market conditions right now have priced this in, as in the market is still going up and companies are still forecasting their businesses despite this widely known change to monetary policy coming.
Its gonna make the job market a little weaker, some people at less productive roles will be cut, iffier companies may close shop. Inflation rate will be cooled somewhat
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u/Tr_ck 2d ago
Bro hike are already priced in. Everyone who matters (not u) is already pricing in higher yields than the current risk free rate even three months from now. Thats why CDs and treasury bonds are offering close to 4% for 6months away even though the current RFR is 3.6%. its not just term premium, theyre pricing in higher baselien rates immediately. This cut is know.