Bracing for Zero

The coordinated effort by global central banks to ease monetary policy continues this week …for better or for worse. On Tuesday, the Reserve Bank of Australia cut the overnight cash rate by 25 bps to 0.50%, the lowest in their history. Fed funds futures have now priced-in three more quarter point cuts by the June meeting, with a 30% chance of a fourth. This essentially takes the overnight target back to zero.

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