All eyes were on the FOMC yesterday The Fed delivered 25bps cut as expected, but the messaging was the real deal On the dovish side: - The Fed will do $40B in treasury bills purchases over the next 30 days - Powell also stated that the Treasury buying may remain elevated for months Officially this is not QE, but it acts to inject liquidity On the hawkish side: a signal of pause in further cuts So now the market has to choose which side matters more. For the moment, the cut is in, liquidity is coming, and the debate is about whether rates now stay the same or are cut further That only time will tell.(Lark Davis)