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First Rule Of QE Club, Don't Call It QE
It’s safe to say the Fed has capitulated. After a (super) brief stint in “neutral” that put the uptrend in Eurodollars at risk just a week or two ago Fed officials have fully pivoted back to dovish after the dreadful ISM data last week. With regards to rate cuts, first was the Evans flip flop we discussed last week and then the mother of all hawks, Rosengren, even flipped on Friday: Evans – now indicating rate cuts once again: THEN -> Sept 30th: “After rate cuts, the Fed should leave policy on hold for some time” NOW -> Oct 3rd: “ISM was a confirmation of FOMC view and I am concerned; open minded about ... (full story)