Markets took back about half of this morning’s post-CPI rally (recap here) as the full set of FOMC communications worked through. Some of that cheapening occurred in response to the updated projections including the fresh dot plot, but more of it happened during the press conference. I think a reason for the latter effect is that this wasn’t Powell’s strongest press conference. What Markets Didn't Like: One key is that the Committee lowered its projection for rate cuts by more than most expected for this year (chart 1). The median projection is for only one quarter point rate cut this year and 100bps next year. I’ll ... (full story)