A 25BPS Cut Is Completely Priced In to Markets, Says Citigroup’s Clark

The transcript discusses the anticipated 25 basis point rate cut by the Fed, which is already priced into the market. It highlights the importance of updates to economic projections, including GDP and inflation forecasts. The repo market's recent volatility is addressed, with insights from Tony James, who views it as a short-term technical issue. The Fed's focus on stability is emphasized, and potential questions for the upcoming press conference are considered. The Fed's economic outlook remains solid, despite increased downside risks, and Powell's language is expected to be less hawkish than in previous statements.

What concerns does the Fed have regarding the effective rate ticking higher?

What was Chair Powell's previous classification of the rate cut, and how was it perceived?