Today the FOMC cut rates by 0.25.
There were 2 dissents amongst voters.
The dot plot projections are unchanged, reflecting a divided FOMC.
It decided to buy bills to the tune of about $20bn/month until April, which will support reserves.
We judge the overall policy to be mildly dovish, given this last development.
As a result, we will be doing nothing right now, but after Powell speak we will probably sell our option hedge, should the market remain at these levels.
Will advise again, should we decide to do that. Just wanted you to have our first reaction, ahead of Powell speech.
