Right now, markets are positioned for a Fed rate cut , and they'll likely get one. But that doesn’t mean conditions are bullish. The Fed is operating in a data blackout: no CPI, no jobs numbers, no clear view on inflation. That raises the risk Powell cuts rates today, but he can deliver a cautious message, warning that future cuts aren’t guaranteed without stronger evidence. If that happens, it’s a “hawkish cut” , and markets could sell off, especially if the updated dot plot shows fewer rate cuts in 2026 than the market expects. Meanwhile, the deeper issue is liquidity. The Fed’s balance she