How do you say cutting rates without saying it? It sure sounds to me like he’s signaling a cut at the October 29 meeting. At present, market pricing is only at 68% for a cut, though one is fully priced in at the December meeting so that might not tee up a big CAD move.I hope we can be a bit more forward-looking but there is a lot of uncertainty and we need to be humble about our forecastsWe expect growth to resume but we expect it to be be soft and probably a little below potentialGrowth is not going to feel very good and it’s certainty not going to be enough close the output gapVery dovish stuff.
This article was written by Adam Button at investinglive.com.
💡 DMK Insight
The subtle hints from the Fed are like a magician's sleight of hand—impressive yet elusive. As traders parse through the rhetoric, the anticipation of a rate cut could create ripples across the market, influencing everything from equities to crypto. If the October meeting does indeed deliver a surprise cut, expect a surge in risk appetite; after all, cheap money tends to fuel speculative fervor. But remember, the market's current pricing suggests a cautious optimism, so don't get too carried away just yet.
📮 Takeaway
Watch for the October 29 meeting; a surprise cut could shift market dynamics significantly.
