Mr. Big Short: Fed May do a 180 on Interest Rates

The Federal Reserve has raised its federal funds rate target by 150 basis points since March, and speculation now centers on how much further the Fed will go.

Interest-rate futures traders see an 89% probability that the central bank will lift rates by at least another 175 basis points this year.

But Michael Burry, whose character (played by Christian Bale) had a starring role in “The Big Short” Movie, sees things differently. He’s already talking about the Fed reversing field to cut rates.

He thinks the excess inventories at retailers like Walmart WMT, Target TGT and Macy’s (M) – Get Macy’s, Inc. Report signal trouble for the economy. “This supply glut at retail is the Bullwhip Effect,” he tweeted.

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