Rate Reduction

Earlier today, the Fed did what markets expected; cut rates by a quarter-point. However, the Fed was very sloppy in elucidating why. I might call its explanation “coalescing around some convenient potential rationales” like global slowing. Thus, Powell was utterly unable to explain to markets what variables the Fed will be paying close attention to, and more importantly, how many more rate reductions there might be in this rate-cutting cycle.

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