Michael McKee

I was looking just now at the five-year, five-year, four-year forward break-even rates, and they actually went down after this Fed decision, not up.

Even though, exactly what you're saying, if you do believe that there will be some additional fiscal stimulus that would be inflationary, you would think that this rate decision would only encourage those inflation fears.

If you are just joining us, we did get that Fed rate decision.

They did lower by 25 basis points, as widely as expected.

Nine to three vote, three dissents.

The news really is that Austin Goolsbee joined the Fed's Schmidt in dissenting, saying that they should not lower rates.

You, of course, had Stephen Myron, a Fed governor, talking about a 50 basis point cut, dissenting on the other side.

Not as many dissents as people had expected.

The Fed did revert back to what we saw in the October statement, using language used just before

pausing rate cuts, so potentially the last Fed rate cut for a long time by this chair, Jay Powell.

I'm just wondering, Bob, if you think that right now this market is saying they are OK to do this, that the data that is available really doesn't signal that this cut and then maybe one more next year really is going to be inflationary.

Yeah, plastic Christmas trees, 15% to 20% higher because of tariffs.

There you go.

So this also is showing up.

Fake Christmas tree.

But it's also increasing the real ones because there are other people.

Diane Swank, we'll let you stay out of this conversation.

Thank you so much for being with us.

Joining us now for this conversation, not this conversation, Matt Lozetti of Deutsche Bank with us, as you typically do before the Fed press conference.

Matt, just first, what's your impression?