Fed opts for a 50 despite strong GDP growth

The Fed’s decision to start its rate cutting cycle with a bang was not a big surprise after the seemingly coordinated media articles late last week warning that the 25bp vs 50bp debate was closer than markets suspected. But you can hardly blame market participants for originally having pared the odds of a 50bp move, given the strong post-payrolls steer from two key Fed officials that they would be supporting a more measured 25bp cut.