I expect the Fed is going to play a part in the narrative through March. Like everything, the shift last week in the Fed Fund futures was pretty wild. The question is if the Fed are actually going to play ball and try and pre-empt any effects of the Coronavirus on the US economy. It doesn't seem like a very "Jay Powell" kind of move if I am honest even if the markets right now are crying out for something to ease their fears, but who knows what the picture will look like in a couple of weeks time.
I think this quote kind of sums up how ridiculous the situation has gotten: “Although moderate Fed rate cuts are unlikely to be very powerful, the committee will probably be reluctant to disappoint market expectations for substantial rate cuts for fear of tightening financial conditions further,” Jan Hatzius, Goldman’s chief U.S. economist, said in a note Friday. https://www.cnbc.com/2020/02/28/goldman-expects-3-fed-rate-cuts-to-offset-coronavirus-damage.html
