Quarter Point Fix

When logic and proportion
Have fallen sloppy dead
And the White Knight is talking backwards
And the Red Queen's off with her head
--Jefferson Airplane

FOMC announced another quarter point rate cut to the 1.75-2.0% range. With newfound clarity concerning more stimulus, market rallied off their lows to close with modest gains--and within spitting distance of all-time highs.

The division among FOMC members about next steps is noteworthy. The FOMC statement did not provide clarity about future policy direction. Vote this time around was split between 7 members approving the 25 bip cut, one wanting a 50 bip cut, and two wanting no cut. Post seance press conferences offered no clear insight either.

Markets have become addicted to monetary policy stimulus. They got another quarter point fix today. Like all addicts, markets will now look forward to the next fix.

The last thing they want to hear is that Fed heads are not united in providing more.