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Why One Bank Is ‘Putting The Fed On Hold’

"...we are eliminating the two hikes we had penciled in this year."

In the hours following the January Fed decision (which was accompanied by not one, but two statements) and Jerome Powell's subsequent press conference, a stunned Wall Street struggled to find the right words to describe the magnitude of the dovish shift. "Capitulation" was popular, as was "relent" and "fold". Of course there were all manner of attempts at humor, some more successful than others (e.g., "Dove show", "the hawks have left building"). Read more ‘Capitulation’: What Wall Street Thinks Of Jerome Powell And The Fed To be sure, Powell did pole vault over an already high bar for a dovish surprise. He had already delivered market-friendly public remarks on two separate occasions in January (here and here) by the time the meeting rolled around and other Fed officials went to great lengths to push the same soothing message. On one hand, then, it shouldn't have come as that much of a surprise that the January meeting produced an overtly dovish outcome. On the other hand, there was an argument to be made that because the bar for a dovish surprise was set so high in light of the accommodative slant as driven home on too many occasions to count during the first three week
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