Comments from Logan:

Fed will need to be nimble with mon pol choicesEconomy is strong and stableSees downside risk to job market, ongoing risks to inflation goalBalance sheet cuts and rate cuts working in same directionLiquidity still abundant in money marketsOver time wants ‘negligible’ balances in reverse repo facilityFed could change reverse repo rate if cash doesn’t leave facility

The Fed has set a benchmark on easing that pegs to top of the tolerable unemployment range at 4.4-4.5% so that’s the marker on when there will be more/less easing than the gradual slide to 3.50% that’s priced in.

This article was written by Adam Button at www.forexlive.com.