The ISM Manufacturing Index came in way below consensus expectations with the lowest reading of the current economic cycle.  As we mentioned in our post yesterday, we are not making the case the data is getting better, just that on a rate-of-change basis – it is getting less worse.  We stand by that view, and also want you to remember at the last post-FOMC meeting press conference, the Chairman of the Fed said that if the data got worse, they would become more aggressive.  Well that ISM data got worse, and we would expect another rate cut at the upcoming meeting in two weeks.

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