Dollar Dumps, Curve Steepens, Stocks Soar As Fed Sets Stage For QE4

The doves got everything they wanted - "patient", "flexible" and a Fed that is positive on the economy? The reaction is consistent - bonds and stocks bid, the dollar offered as Powell sets the stage for an even bigger reversal to save the world...

The dollar is getting hammered...

 

Bond yields are tumbling...

 

The yield curve is bull steepening...

 

And stocks are soaring...

As rate-change expectations for 2019 slump further (to -3.5bps)...and Fed Funds futures pricing in a 50-50 chance of a rate-cut by the end of 2020...

Let's hope that Powell can stick to the script in the press conference...