The Federal Reserve (Fed) has finally pulled the trigger on rate cuts — 25bps down, with two more likely this year. But the dot plot reveals deep divisions inside the Fed for next year: some see no further moves, a few even expect hikes, while others want far steeper cuts. For now, the message is clear: the Fed is not bending to political pressure, and markets are left guessing what comes next.
Stocks wobbled, yields bounced and the dollar bounced back from the year lows, but sentiment is getting bullish as investors digest the news, and the dollar could claim a medium term bullish correction on the way Fed manages its policy and its independence. On individual news, Nvidia took a hit after Beijing told Alibaba and ByteDance to halt orders, a move that could cost up to $1bn in annual sales. Elsewhere, the Bank of Canada (BoC) followed with...
