Lags And Stepdowns
The word "lags" came up nine times in the November FOMC minutes, released into a pre-Thanksgiving void on Wednesday.
The market's initial reaction was to trade the account of this month's gathering with a dovish bias, but I'd argue the price action was largely meaningless.
Traders, carbon-based and otherwise, were keen to discern unanimity around the so-called "step-down" narrative, introduced in mid-October by Wall Street Journal "Fed whisperer" Nick Timiraos, who suggested the Committee was
Best practice for central banking is usually iterative. We’ll see more releases b4 the next meeting.
H-Man, I agree with RIA that the early December prints will tell the tale for the mid-December meeting. If NFP and CPI show any kind of slide, the “lags” will win the day and equities will look like the walking dead scaling the walls of Winterfell.