Christmas comes early to financial markets
The dollar plunged yesterday when the policy elves at the world’s most powerful central bank met markets halfway, indicating they expect to cut rates at least three times next year, and four times in 2025. Perhaps more importantly, a jolly Jerome Powell chose not to fight back against an ongoing loosening in financial conditions in the post-meeting press conference, instead pointing to a series of indicators showing the economy achieving a soft landing and suggesting inflation could come down without a rise in unemployment. Some of the fervour is cooling this morning, but not much. With markets now pricing in...