It never ceases to amaze me how some individuals can become so mired in a single thought that they are completely unable to accept new information that may slightly conflict with their single thought.
"The timing surprised most people," said Dan Seto, ...
In fact, the talking heads had widely rumoured that the rates would be cut by Monday; and that such a cut had already been priced into the market. Obviously, Dan didn't believe it was coming before the November meeting if then.
"They wouldn't move unless they are really, really concerned about current conditions," said Kevin Harris, ...
In other words, Kevin Harris is a bear, was a bear, and will remain a bear until the train runs right over him.
...
IMO, the Fed has sent a clear signal that it's no longer fighting the Inflation Battle, that inflation is in fact the last war not the current war. It's further indicated that it will take pre-emptive action to guard against any threat to the US economy. That will be quite reassuring to business leaders as well as to the market.
This, IMO, is the change. ... and it's one that will outlast the talking heads with their popular quotes for the press.
FWIW,
Ian. |
