It's been an 'eventful' six weeks since The Fed decided (on Sept 18th) to slash interest rates by 50bps.

The macro-economic data has literally exploded stronger...

...with inflation reigniting and growth surprises soaring...

...and that has slammed rate-cut expectations down by over 100bps...

Which has helped lift gold and stocks while crude prices have collapsed (and Bitcoin has gone vertical)...

But, more problematically, the mortgage rate has ripped higher since The Fed cut...

The market is fully priced for 25bps cut today, but December is now a coin-toss (54% odds of another 25bps).

Will The FOMC (and Powell's presser) jawbone expectations down further? Will Bowman dissent again?

Fed removed language that it has "gained greater confidence that inflation is moving sustainable toward 2 percent".
{ai:summary}The Federal Reserve cut the benchmark interest rate by 25 basis points to a range of 4.5%-4.75%. Despite this, macroeconomic data has shown stronger-than-expected growth and rising inflation, which has dampened future rate-cut expectations.Mortgage rates have increased following the cut, while gold and stocks have risen. The Fed's language has shifted, indicating a more cautious approach to inflation and acknowledging easing labor market conditions. #economy

Fed Cuts Rates By 25bps As Expected, Removes 'Dovish' Inflation Language

Loading...