The FOMC delivered the goods that made equity and bond holders a little richer than they thought going into the communications. By the time the dust settled, the S&P500 rallied by another 1%, the USD depreciated with USDCAD moving about half a penny lower, and the US Treasury curve bull steepened in 2s10s as the two-year yield fell by about 6-7bps with the 10s yield little changed. The statement is here and the Summary of Economic Projections including the revised ‘dot plot’ is available here. Here is what they did. The dot plot continued to guide 75bps of cuts this year (chart 1). One reason why markets liked the ... (full story)