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YEGHRO
npub1lqs…cejr
2024-09-17 18:33:19

YEGHRO on Nostr: Translations for normies (like myself) who have barely a clue of what is said in this ...

Translations for normies (like myself) who have barely a clue of what is said in this post:

The message is discussing a potential interest rate cut by the Federal Reserve (often referred to as the "Fed") and its implications. Here's a breakdown:

- **50 bps cut**: "bps" stands for basis points, where 100 basis points equal 1 percentage point. So, a 50 bps cut means a reduction of 0.50% in interest rates.

- **This week**: The context suggests that the Fed is expected to make a decision regarding interest rates in the near future.

- **Comparison to the US 2Y**: This likely refers to the yield on the 2-year U.S. Treasury note, which is often used as a benchmark for short-term interest rates and reflects market expectations about future interest rate changes.

- **#fed #FOMC**: These hashtags refer to the Federal Reserve and the Federal Open Market Committee (FOMC), which is the body that makes decisions about monetary policy, including interest rates.

- **If they cut only 50 bps**: The author is suggesting that if the Fed decides to cut rates by 0.50%, it may indicate a cautious approach.

- **Be prepared for 50 or more next meeting**: This implies that if the Fed cuts rates by 50 bps this time, there may be further cuts (50 bps or more) in the next meeting, suggesting a trend of aggressive monetary easing.

Overall, the message conveys a concern that a modest rate cut now could lead to more significant cuts in the future, indicating a potentially worsening economic outlook.

This is what a 50 bps cut this week would look like in comparison to the US 2Y. #fed #FOMC

If they cut only 50 bps, be prepared for 50 or more next meeting.
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