The Weekly Fix: Coming Full-Circle to a Mid-Cycle Adjustment

Welcome to the Weekly Fix, the newsletter wondering if Brian Moynihan will end the market's obsession with trading banks off the 10-year yield. –Luke Kawa, Cross-Asset Reporter

Market participants were seemingly betrayed on July 31, when Federal Reserve Chairman Jerome Powell suggested that the central bank’s first interest-rate reduction in nearly a decade was part of a “mid-cycle adjustment” rather than a full-blown easing cycle. Fast forward a couple months, and the price action is increasingly a story of traders coming around full-circle to the Fed’s view – and implicitly acknowledging that a shallower-than-previously-anticipated easing cycle is a positive development.