The Fed is in a lose-lose situation: 1. If the Fed cuts rat...

The Fed is in a lose-lose situation:

1. If the Fed cuts rates aggressively right now, markets tank further and they risk a resurgence of inflation.

Cutting US rates will only make the Yen carry trade unwinding WORSE, likely sending the Nasdaq into bear market territory.

2. If the Fed doesn't cut rates right now, recession fears will continue to mount.

No rate cuts means more worry about rising unemployment which is now at a 3-year high.

The Fed must pick between market and inflation instability or a potential recession.

And even if they pick the right former, we may still end up in a recession.

It's going to be a bumpy road ahead.