Republic Risk: What the Fed Does (Centrally Plans the Economy)

Here's a primer.

Equity Storm Watch Is GREEN on the S&P 500 and YELLOW on the Russell 2000

Dear Fellow Expat:

Markets started pumping the brakes a bit on Tuesday as investors prepared for important updates from both the Federal Reserve and the Bureau of Labor Statistics (BLS). There’s a considerable revision of jobs on tap - and some estimates suggest the government overestimated new employment by 1 million positions. (Whoops).

Today, we'll get the release of last month's Federal Open Market Committee (FOMC) meeting minutes. This will give us a better idea of how many Fed Presidents are prepared to start cutting in September, or which hawks are still holding out for more data. 

The path forward seems set in stone with all the talk around the Fed. An easing of monetary policy is right around the corner, and bond market momentum remains strong ahead of Friday. 

The "Higher for longer" concept on rates has quickly turned to "when will cut?"

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Dear Fellow Expat:

So, what has investors spooked this morning?

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