In the FOMC press conference, Jerome Powell said “it is not the beginning of a long series of rate cuts”. Cutting by 25 basis points was the absolute bare minimum the market had been hoping for from last night’s decision from the Fed. From the market response, there was a clear disappointment. Although there were nods towards “muted inflation” and “uncertainties” to the domestic economic outlook, the doves have been disappointed. Bond markets gave it the thumbs down, with a significant flattening of the yield curve (at least on the 2s/10s spread). This is the opposite of wha t the Fed would have wanted to achieve.