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The premature September cut
The Fed started the easing cycle in September with the jumbo 50bpt cut, and followed with another 25bpt cut in November.
The easing cycle started in response to the weak July
SP500: Expect The Fed's Major Hawkish Turn In December
Summary
- I believe the Fed is expected to make a major hawkish turn in December, revising the SEP projections for inflation, unemployment, and Federal Funds rates.
- In addition, the Fed is likely to pause the normalization policy in December.
- The S&P500 fell sharply when Powell warned that the Fed is "in no hurry to cut", and the selloff is likely to accelerate as the December FOMC meeting approaches.
Commodity Trading Adviser (CTA), member of National Futures Association. Professor of Finance, research on Global-macro issues. Editor-in-Chief, Journal of Corporate Accounting and Finance.
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