Fed launches easing with a big 50bp splash…
Fed launches easing with a big 50bp splash…
However, the march towards neutral will likely be wrought with volatility…
The Fed delivered a neutral-to-slightly-hawkish 50bp cut to start the easing cycle. The 50bp cut (and Powell’s messaging) was in line with our out-of-consensus view (see link). Yet, this seems like a catch-up for not cutting in July, and also probably driven by the acknowledgement that jobs data has been overstated.
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