I think it's probably them worried more just about a very weak economy than whether it's a soft landing or a recession. But the Fed, they don't really care. They just want to see the economy get back up.
The factory sector continues to grow at a fast rate, probably further absorbing existing capacity. We look for healthy increases in both industrial production and factory usage.
What I think this means is that the Fed waited maybe for the stock market to go up a little and then cut rates and effectively reinforced the price action. Therefore it set a bottom on stocks, but it's definitely a very good move I think for the Fed.
We do not think the chairman will break new ground.
The Fed is toward the end of its rate hikes. Equities and bonds got a bid because the Fed talked about maybe finishing its tightening.
Treasuries are going to seek higher yields over the next weeks. The labor market looks quite healthy.
People are telling you they are still somewhat optimistic about the future, but the current environment is lousy.
The retail sales figures were really soft, much softer than expected.
Already in December, the vehicle sales data seemed to be regaining traction.
The economy is doing fine and the labor market is on the mend.
