The Market Waits for the Fed to Cut, But It’s Just Not Happening

The world expected a recession coming into 1H23, which thanks to the lagged effects of Biden's fiscal stimulus together with China's exorbitant stimulus post their reopening and the Fed's very sneaky BTFP program that stemmed the fallout from the US regional bank crisis… the economy did not really show signs of rolling over until now. Low and behold as we entered Q3 earnings reports, even large-cap Tech reported numbers that beat EPS estimates, but the outlook into Q4 was cloudy (no pun intended) and uncertain.