FED FIGURES

Unsurprisingly, the Fed lowered rates by 25bps because ongoing labor market deterioration concerns more members of the Fed than the elevated inflation levels. Despite heated rhetoric about strong reluctance to cut more, like what was said in October, they’ll cut more. As for buying T-bills, don’t confuse it with QE, that requires buying long bonds. Substantially more data will be available by the next meeting, which could meaningfully change policy.