Clock is ticking for US recession, return of Fed's QE, says black swan fund

The first interest rate cut by the Federal Reserve signals a U.S. recession is imminent and a dramatic drop in financial markets could once again force the U.S. central bank to come to the rescue by buying bonds, said tail-risk hedge fund Universa. The Fed said last week it started cutting rates to recalibrate monetary policy and to maintain strength in the labor market. But for Mark Spitznagel, chief investment officer and founder of Universa, this was the start of an aggressive reduction in interest rates, as a highly indebted U.S. economy, which has so far defied expectations, will soon crack under the weight of interest rates still at historical highs.