- September and today was a risk management cut, that’s not the case going forward
- Policymakers have different forecasts and have different risk tolerance
- Repeats the ‘far from it’ comment about a foregone December rate cut
- We have a clear assessment that we are only slightly above ample in reserves
- We see a gradual cooling in employment but nothing more than that
The key line in the opening statement was:
“In the committee’s discussions at this meeting there were strongly different views about how to proceed in December. A further reduction in the policy rate at the December meeting is not a foregone conclusion.”
The Fed didn’t like that a December cut was 92% priced in. That’s quickly fallen to 70%.
This article was written by Adam Button at investinglive.com.