in December were both unexpectedly bad and clear concerns, though the data has been choppy and these were one-off reports. The Fed emphasised again a wait and see approach here, with some positive reports and recent more positive trajectory providing reasons for optimism.The Fed is concerned about overseas growth in Europe and, to a lesser extent, in China. The Fed doesn't see the European situation as recessionary though is monitoring it.
Nonetheless, though again the Fed isn't overly concerned about overseas trends, these have shifted from being a tailwind to a headwind for the U.S. economy on the Fed's current view.While the Fed sees the economy currently in a reasonable place with rates broadly neutral, the futures markets now put the of a rate cut before the end of the year at around 4 in 10.