>>60960162
just because it cut doesn't mean things aren't restrictive. trajectory does matter but rates are still high and dampening economic activity. inflation has many causes and amplifiers, velocity of money is one, which is related to economic activity, which high rates address, but money supply is another, and quantitative tightening directly reduces it.
i very much doubt we'll get deflation, but cathie wood predicts it and i wouldn't dismiss her opinion. basically it means the fed is still hawkish. qt is good, reverses the dangerous financialization of the deficit, and more room on the fed's balance sheet means the next time they have to do something so drastic (hopefully never) the effects are less problematic. at least that's what i think. it also increases the supply of bonds, something that has been dealt with fine so far, but could exacerbate a shock to the financial system were that to occur (hopefully it does not).