📉The market still expects rate cuts next year, but the Fed's narrative suggests a 'soft Landing' is not the base case.
📊The FOMC projections for GDP and inflation have been consistently inaccurate.
💰The Fed's goal of rolling off the balance sheet may raise questions about potential losses.
🎢The mixed signals from the FOMC meeting have left people uncertain about the direction of the economy.
🏢Overall, there is a lack of consensus regarding long-term trends for inflation and the economy.
What were the main takeaways from the FOMC meeting?
—The main takeaways from the FOMC meeting include no rate change, uncertainty about a 'soft Landing', and the potential roll-off of the Fed's balance sheet.
Are rate cuts expected in the future?
—The market still expects rate cuts next year, although the Fed's narrative suggests a different scenario.
Why are the FOMC projections for GDP and inflation consistently inaccurate?
—The FOMC projections for GDP and inflation have been consistently off, which raises questions about the accuracy and reliability of these forecasts.
What impact will the Fed's balance sheet roll-off have?
—The Fed's goal of rolling off the balance sheet may have potential implications, including potential losses.
What is the overall sentiment regarding long-term trends for inflation and the economy?
—There is a lack of consensus and a divided sentiment regarding long-term trends for inflation and the economy.
00:00The FOMC meeting provided mixed signals, with no change in rates but a narrative of a 'soft Landing' not being the Fed's baseline expectation.
06:00The FOMC projections for GDP and inflation have been consistently off, leading to uncertainty in the market.
10:00The Fed's goal of rolling off the balance sheet raises questions about potential losses and the overall direction of the economy.
13:00The mixed signals from the FOMC meeting have left people uncertain about the long-term trends for inflation and the economy.
