The move is rooted in concern for corporate debt levels, not so much in equity prices. Almost all bank loans are grounded in LIBOR, so rate cuts will diminish the corporare debt burden quite substantially. Also many mortgages are variable rate so those folks will get some relief
Lots to say about this, but for now.... https://twitter.com/chigrl/status/1239299322887446529 …pic.twitter.com/w2zfanTEfD
-
-
This Tweet is unavailable.
-
- Show replies
-
-
-
I remember being old enough when people were like “the fed should raise rates faster and risk higher inflation because they’ll need more room to maneuver for a recession” and that was somehow a strange or unreasonable thing to say
-
Inflation risk is more of a thing the lower you go, but i do agree that it would've been nice to have had some more interest rate buffer... could've reined in the high yield debt boom for riskier corporates (somewhat)
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.