MacroEdge Midweek Report: 'Nirvana Today, Hangover Tomorrow' Fed Fires the Cannon, Fedspeak Analysis
In this Midweek Report, the MacroEdge team dives into the 50BP rate action by the Fed, lays the groundwork for its implications, provides a teaser at the next Weekly Report, discusses Fedspeak, & more
Nirvana Today, Hangover Tomorrow' Fed Fires the Cannon, Fedspeak Analysis (@DonMiami3, MacroEdge Chief Economist)
Good Wednesday evening all,
We made it through our first of two major Central Banks announcing policy action this week with the Federal Reserve easing rates by 50 basis points (or .5%) down to a 475-500bps target range. Quickly I want to congratulate our team members and contributors for another near standalone forecast in the world of economics, mainstream economics firms continue to push the narrative that they’re being fed - we’re putting our ‘driven by data’ mission in motion again and again - and correctly forecasted the first cut being 50bp back in late July when the Federal Reserve waited too long to pivot on worsening labor market data. Jerome Powell held back no remarks about the quality of the labor market data - saying large revisions continue to impact the data and they are now factoring that into the equation in the months to come. Looking back - he admitted their policy error - citing the fact that they should’ve lowered rates in July when the labor market data hit them like a brick to end the month of July.
As usual, we’ll keep our Midweek Report short and to the point and hope to catch you Friday evening for MacroEdge Radio #22, our next Redeye report, along with the next very in-depth Sunday Weekly Ozone Report.
More to come from our team on the ‘Roadmap to RESights’ that will be announced on Friday evening, so more excitement to come there then. Welcome to the future of financial and economic research and data.
With all of that - let’s dive into the data (or Ozone) if you haven’t yet:
