FOMC decision: A lesson in managing expectations

Mid-week market update: The Fed hates to surprise markets, but for the first time in a long time, market expectations of FOMC action was highly uncertain. Is the Fed going to cut by 25 or 50 bps? On the weekend, the majority expected a 25 bps cut, but by Monday, it had shifted to 50.
As it turns out, the decision was to cut by 50 bps. Expectations before and after the decision announcement were largely unchanged. It's still expecting another 75 bps by year-end, which is more aggressive than the dot plot.


The full post can be found here.