SpacemanSpiff on Nostr: This shines new light on the Sept rate raise. If they went with 0 or 25 bip, they ...

This shines new light on the Sept rate raise. If they went with 0 or 25 bip, they could have reversed course and raised rates to spike a Trump win with a quick recession. But with the 50 bip cut it's much harder to reverse course, both politically and financially.

This puts the recent special auction to roll long bonds to bills and notes into a new perspective. J Pow prevented them from causing an asset selloff when Trump came in, so their only play was to roll to duration to try and spike inflation and pin it on Trump. Which is, pretty. Fucking. Weak.