As the first set of post-shutdown official data started to arrive over the past week, the major uncertainty for markets ought to have been what the Federal Open Market Committee will decide to do with the latest information at its meeting next Tuesday and Wednesday. However, that is just not the case. Equity investors seem to have ignored the latest data as long as the narrative of imminent easing remains intact even though the case for a rate cut looks thin based on the Federal Reserve’s dual mandate. The labor market is not weakening; inflation progress has stalled; and inflation expectations — especially those ... (full story)