The Fed met expectations yesterday by cutting rates and although U.S benchmarks swung briefly in both directions, they are right where they were leading up to the policy decision. FOMC members poured cold water over the action by not forecasting additional cuts this year.
U.S benchmarks jumped to session highs on yesterday’s close and ahead of today’s big Fed decision. For the last two months, the Federal Reserve has been fully expected to cut rates with nearly a 100% probability.
U.S benchmarks are battling to pare losses after opening lower amid geopolitical shock due to the drone attacks Saturday on a Saudi Arabian oil facility. The Abqaiq facility is known to be the most important in the world.
We got two new headlines last night, one that said the U.S. would delay the increase in tariffs until October 15th. The other was that Taiwan would step in and buy 3.6 billion dollars in American agricultural products.