“It is essential an admission that they were shocked by the market reaction to their quarter point cut yesterday.”
I’m with you except for your first sentence, quoted above. There’s no way to put together that kind of agreement in 18 hours. It had to have been in the works for some time. The FED understood the problem of rate cuts ceasing to have the desired effect, and needed to save some bullets for next year. LIBOR is the problem, good analysis there. I’m not going to dive in for that LIBOR buy, but I am going to open positions in short and medium term Corp Bonds.
If that agreement was put together in 18 hours, we should all be buying canned goods, water and ammo.