Our thoughts on the FOMC Rate Cut decision:
The Fed cut interest rates by 50bp this week and Fed Chair Powell did a great job of being very balanced during the press conference. However, given the SEP and dot plot, we see this as a Hawkish cut, as year-end and next-year SEP came in above market pricing. In the near-term, we think a modest bear steepening and an equity factor rotation (size and value ex-financials) makes sense. However, I continue to remain cautious on the outlook and question the Fed's rise in confidence of a soft landing given the cooling in the labor market. Read our views here: https://lnkd.in/gUtX2jya