Goldman On Powell's Halloween Curse: 'December Fed Cut Still Our Baseline'

The market had been of the view that October and December cuts were locked in going into this week’s Fed meeting, with the US government shut down and subsequent lack of data clarity compounding the baseline indicated by the September dot plot.

The October cut was delivered as expected, but Powell threw a curve ball on December suggesting policy was not on a pre-set course and that views on the committee differed.