Block Scholes reposted this
Fed Cuts, Markets See Red In a move that was almost entirely priced in by markets well ahead of time, the Federal Reserve delivered another quarter point rate cut that brought the target range for its federal funds rate down to 4.25-4.5%. However, it was the even more hawkish undertone than some expected, delivered in Powell’s presser and the SEP, which spooked markets. We had banged the drum on the mixed picture of macro data for several days before the event. However, equities and crypto traders were caught out as traders reconsider their positioning in risk-on assets, despite our heads-up. Some of the caution around these cuts or lack thereof in 2025 had been priced in by crypto-asset derivatives markets in the week ahead of yesterday’s meeting -- and price action this evening is further damning of the result. Read the full report here: https://lnkd.in/eez_eMrs
