G. DeSimone: Emergency Rate Cuts and Beware of the Bull Steepener

March 6, 2020

On March 3, 2020, the Federal Reserve announced its first emergency rate cut since the Financial Crisis in order to combat mounting Coronavirus fears. This rate trimming of 50 basis points from 1.75% was intended to calm markets and reduce business uncertainty. The rare nature of such actions provides valuable information regarding the current economic backdrop. Read the full paper below.