Milk Road Macro What Do Fed Rate Cuts Mean For Markets w/ Mike McGlone
Sep 18, 2025
Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence, shares his perspective on recent Fed rate cuts and their implications for markets. He highlights how gold is surging while Bitcoin struggles. McGlone warns that we might be in the calm before a storm, emphasizing the overvaluation of U.S. equities and the risks posed by yield curve control. He also explores copper as a leading indicator for global demand, suggesting that the market is not entering a new bull phase, but rather facing significant challenges ahead.
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Trading Pits Taught Real Market Lessons
- Mike McGlone highlights five years in Chicago trading pits as more instructive than his advanced degrees.
- He says pit experience taught him practical market instincts he values above credentials.
Fed Cuts Don't Guarantee Stock Rallies
- Fed rate cuts aren't an automatic stock-market bull signal; past easing cycles preceded major drawdowns.
- Mike McGlone says gold usually outperforms stocks when easing begins, signaling underlying risk.
Use Fed Funds Futures As A Roadmap
- Watch Fed funds futures to see where markets price rates a year out; they showed about 3% next September.
- Use equity declines as the biggest force that would push Fed funds materially lower, McGlone advises monitoring that link.
