The FED can't cut rates tomorrow; they need to keep policy tight and ease.
They need to control the Secured Overnight Financing Rate and stop QT and ease the system before they can cut rates.
There is no situation where you ease, and cut rates, with SOFR acting up. And if they do,
It will cause equities to rock, banks to continue to struggle with SOFR and cause a problem they are not going to want to fix.
We know it's priced in, and we know the forwards are saying rate cut. But we really do not know how they cut rates and ease. It is one or the other tomorrow, not both.
#MonetaryPolicy #FOMC #QT #QE #Ratecuts