⚡All about managing expectations with just words! After Powell's ally Williams repeatedly delivered dovish remarks, the market's expectations for a December rate cut have been completely reversed— A week ago, the probability was as low as 29%, but now it's back up to 82.9%. The market firmly believes this is Powell testing the waters! This week's data also seems to be leaning in that direction. Additionally, a client survey conducted by JPMorgan shows that investors' net long positions in U.S. Treasuries have risen to the highest level in about 15 years. In other words, with yields remaining stubbornly high, if the Fed doesn’t actively lower rates through QE, arbitrage trades could potentially collapse the entire system. So, does it look like the Fed has no way out?