Tl; dr: Despite only 9 of 113 economists surveyed expecting a 50bps rate-cut, Powell and his pals did it. At the same time they slashed their ‘DOTS’ expectations for rates, despite not adjust growth expectations, barely adjust unemployment, and hoping for lower inflation.
And all this two months before the election… amazing!
Paging Arthur Burns…
…and of course, if this occurs, guess who will get the blame when he wins in November!
JPMorgan’s AI tool (natural language processing) grades the Fed’s statement as outright dovish.