No Cuts Ever?

The Fed decided to keep rates steady while messaging higher inflation expectations and lower growth expectations.

While tariffs get a lot of focus, ultimately cutting rates while the economy is doing OK and the budget deficit is -6% seems like more than the Fed is up for.

What can change that? Rising unemployment, weakening growth, probably a smaller deficit.

Market went down after Powell said they're going to wait a few months.

I'd consider this meeting to be hawkish but does OpEx freeze us around here?

Can the options market reset the market lower after OpEx ends? Lots of open interest around 5900.

War and trade still an issue.

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Twitter: @ColinSWP

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