Legendary trader says investors are watching the wrong Fed lever: Chart of the Day
Key takeaways
- His point is simple: Lower rates can make money cheaper.
- That matters most where the market is most crowded.
- "Lowering rates if you reduce the money supply does not produce inflation," Sperandeo told Yahoo Finance at the June ETP Forum hosted by ETFGlobal.
Legendary trader says investors are watching the wrong Fed lever: Chart of the Day Jared Blikre Mon, June 15, 2026 at 10:00 PM GMT+7 3 min read ^GSPC The AI rally has turned semiconductors and megacap tech into the market s pressure point — and legendary trader Victor Sperandeo said investors may be watching the wrong Fed lever.
Sperandeo, the veteran options market trader known as "Trader Vic," said investors are too focused on whether the Federal Reserve cuts the fed funds rate — the overnight borrowing rate that anchors short-term money — and not focused enough on what happens to the Fed s balance sheet, the pile of assets the central bank holds.
His point is simple: Lower rates can make money cheaper. They do not necessarily make money easier to get.