Merk Research: Fed Report June 2019

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Includes: BBSA, BIL, CLTL, DFVL, DFVS, DLBL-OLD, DLBS, DTUL, DTUS, DTYL, DTYS, EDV, EGF, FIBR, FLAT, GBIL, GOVT, GSY, HYDD, IEF, IEI, ITE, OPER, PLW, PST, RINF, RISE, SCHO, SCHR, SHV, SHY, SPTL, SPTS, STPP, TAPR, TBF, TBT, TBX, TLH, TLT, TMF, TMV, TTT, TUZ, TYBS, TYD, TYNS, TYO, UBT, UDN, USDU, UST, USTB, UUP, VGIT, VGLT, VGSH, VUSTX, ZROZ
by: Axel Merk
Summary

While the last Fed hiking cycle (from 2004 to 2006) was a constant move higher in rates, historically it is not uncommon for hiking cycles to have periodic phases of rate cuts.

A rate cut from the Fed does not necessarily signal the end of the economic expansion.

Fed rate cuts might un-invert the 10yr-3m yield curve, if only temporarily.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.