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The market has quickly reversed from its over-exuberant dovish response to Powell's pivot-heard-around-the-world in December - saying that not only had rate hikes ended but that "policymakers had discussed timeline to start rate cuts" (and just two weeks after Powell said at the start of December that it was "premature" to even speculate on rate cuts) - dragging expectations from over 7 cuts in 2024 to just a 25% chance of 4 cuts.
