Over The Last 2 Months:
1. Futures have added 140 basis points of rate cuts
2. The 10-year note yield is down 120 basis points
3. Average 30-year mortgage rates are down 130 basis points
4. The S&P 500 is up 16% in just over 40 trading days
5. US Dollar Index has fallen 7% on Fed pivot talks
All while core inflation is still roughly double the Fed's 2% inflation target.
This can't be what the Fed wanted.
Expectations must be managed or inflation will return.
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