I really do not understand this: if it were to be optimal...

I really do not understand this: if it were to be optimal policy to cut by 50 bp in a month, it is certainly optimal policy to cut by 25 bp now and probably optimal policy to cut by 50 bp now: Tim Duy: Another Portion of Yield Heading Toward Inversion: "Neither of the today���s developments���'easing' trade tensions or higher inflation���should prevent the Fed from easing at next month���s meeting.��I suspect though that they make it hard for the Fed to justify a 50bp cut in September.��If the economy needs a more aggressive Fed response up front to prevent recession, then a lower chance of that outcome... should induce the longer end of the yield curve to flatten further and then invert...

#noted