CB Views: September 2024 FOMC Recap

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.