Fed statement with one that didn't want to cut

With cutting interest rates again by 25 bps to a range of 3.75-4% as we all expected, the commentary on the economy and inflation was little changed from what they said in September. They also announced that on December 1st, QT will officially end with a balance sheet around $6.5 trillion vs $4.2 trillion in February 2020, also as expected.

By the way, on the lack of government issued data, the Fed plugged this line in when talking about the unemployment rate which “has edged up but remained low through August”, “more recent indicators are consistent with these developments.”

Governor Miran wanted a 50 bps cut which is what he voted for in September, as we know. In contrast to Miran and the rest of the voters, KC president Jeff Schmid dissented and wanted no cut.

Bottom line, no real surprise except the Schmid dissent makes me more confident that Jay Powell is going to push back on a December cut being the lay up the markets think it is. Bond yields across the curve are up a slight 1 bp from 1:59pm est. At the presser, I expect some more market action.