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What are the Fed’s possible considerations on rate cuts?
The FOMC language yesterday pushing back at the market’s pricing on a rate cut coming in March was a bit of surprise to the market. We go through the various arguments for why the Fed is hesitating on cutting the policy rate and also the key reasons why the Fed should cut the policy rate and continue over the next 12-18 months. Why is the Fed hesitating on rate cuts? Did the Fed provide a hawkish or dovish message yesterday in its FOMC statement and subsequent press conference? Some are arguing that it could be both depending on how you look at the message. Judging purely from the reaction in equities the ... (full story)