Fed's mouthpiece: The FOMC does not quite recognize the market's pricing of a rate cut in December.

On October 30, Nick Timiraos, the “Fed's mouthpiece,” published an article stating that Powell's press conference indicated that the FOMC does not overall agree with the market's previous high pricing for a rate cut in December. Powell mentioned that there are significant differences in our views on how to act in December. He emphasized that the rate cut in December “should not be seen as a done deal. In fact, far from it.” This has gone beyond their usual disclaimer of “policy does not proceed along a preset path,” and it is clearly an effort aimed at reclaiming some policy flexibility to avoid being forced into taking a specific action. What if there is no government data to help clarify the economic situation? Powell pointed out that this means there is “a very high degree of uncertainty, which could be a reason for cautious action.”