
Premium to Humility (guest: Neil Azous)
The Market Huddle
00:00
The Battle for a Cutting Cycle
During a cutting cycle, the market prices in a full return to that cycle's neutral rate within 4.2 months. So if you take that basic data and say, oh, why is a cut being priced in July? And our last hike was on May 3. That's about two months. Neil Johnson: The reason they have to cut is because something broke and they broke it. He says during the off-discussed 1980 cycle, the Fed cut interest rates in the same week as an interest rate hike more than once.
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