I have discussed the December rise by the FED with a US based investor, and we were both of the opinion that the markets would have been spooked and reacted negatively if the FED had in essence changed it's mind and left rates on hold.
Why, because it would create a signal that the FED had new information about the economy, and that it was basically bad news. I believe that more damage was done by the commentary from Powell, that there seemed no reason to change course re QT, and normalisation of interest rates, back to 2.5 - 3%, which in his view, would reflect a healthy economy. As it turned out, there were other factors that were causing fragility, reflected in the correction started around the beginning of October. I think he is now a bit wiser and more cautious.
@radxI have discussed the December rise by the FED with a US...
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