BoA ML on the Federal Reserve - a "50bp head fake"

Author: Eamonn Sheridan | Category: Central Banks

Bank of America / Merrill Lynch says NY Fed Williams "unintentionally misguided the markets." 

a "debacle in communication" 
But, on the upside it has convinced BoAML analysts that there will be a 25bp cut.

"We suspect the FOMC was uncomfortable with the market moving toward a 50bp cut and wanted to push the market back to a 25bp baseline."
Yes, I think the Fed was indeed 'uncomfortable' with the perception the market took away from Williams' speech. 

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