Powell's post-announcement speech was far more hawkish than most expected.

The Fed Chairman says Rate Move was a ‘Midcycle Adjustment,’ Hinting More Cuts Not a Guarantee.

Cutting rates as way to brace against “downside risks,” to support the economy and to boost inflation, Powell said during a press conference after the vote.

“We’re thinking of it essentially as a mid-cycle adjustment to policy,” he said He added that Fed officials “think it will serve all of those goals” that he mentioned.

Looking at the history of the Fed, Powell cautioned against assuming that this week’s cut is the beginning of the cycles that happened in the past.

“That refers back to other times when the FOMC has cut rates in the middle of a cycle and I’m contrasting it there with the beginning of a lengthy cutting cycle,” he said. “That is not what we’re seeing now, that’s not our perspective now.”

The chairman said there was “definitely an insurance aspect” to the cut.

“What you’ve seen over the course of the year as we’ve moved to a more accommodative policy, the economy has performed about as expected with the gradually increasing support,” Powell said. “Increasing policy support has kept the economy on track and kept the outlook favorable.”

Sure to Howl

Trump is sure to howl.

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The market already has.

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