The Fed has quite a bit of incentive to cut at least 25 basis points tomorrow, and a rationale to cut 50 basis points if they make noises about last one before the elections unless the ecnomy dramatically worsens.
CPI out tomorrow will be lowballed if they can do it to rationalize the cut.
The economy is sinking rapidly and the banks need a steeper rate curve on the very short end. The rally in the Two Year Treasury today was breath-taking.
VIX is quite high. Start watching for a dead cat bounce at least.
