Fed announced not only 'mysterious', but also a 'perplexing' decision - FT

The Financial Times (FT) carried an editorial piece on Monday, shedding some light on the US Federal Reserve’s (Fed) mysterious U-turn seen last month.

Key Quotes:

“Two weeks ago made a mysterious U-turn.

Signaled that its hiking cycle was over for now.

Not only 'mysterious', but a 'perplexing' decision.

The various measures of US economic performance are almost universally strong.

The US economy is in rude health - recession fears were, and are, overdone.

The move was in response to lingering slack in the labor market, a capitulation to markets and the risks are significant.

The US corporate debt has reached record highs.

There remains an inescapable fear that perhaps the Fed's short-term support for an economy that was already in good health opens the door to a surge in volatility later in the year.”