For the last few years the FED continues to manufacture BS scenarios that dovetailed with the Biden administrations economic lies. The FED has not only gone along with, but used the nonsense about strong job creation and low unemployment, to justify their tightening and holding rates up for longer, before starting the recent cuts.

Now they are spinning another fairy tale about the need to slow the cuts and likely have a pause with the outside chance that future hikes might be needed. This is total nonsense. The reason they are once again playing games, is because next week Japan’s central bank will be considering a rate hike.

The US has pressured Japan, up to this point, to slow walk any changes in their policies that have built up the carry trade to insane levels. Now that the Japanese have finally gotten to where they are ready to act, the FED is deadly afraid that a repeat of the meltdown that occurred in the first few days of August would crash US markets.

They aren’t going to be able to cut in the last week of this month, if the Japanese raise rates next week, in front of them. They need to save a possible very large cut for the future, with possible QE and or yield curve control, if the Japanese make a move that blows up global financial markets. Maybe the new administration gets Japan to hold off for a little while longer? The rest of January should be quite interesting.