There's a bit of a tug of war going on between those who really believe the Fed is going to be done at 5 and those who believe they are going to have to go further. |
They have to tread carefully, they don't need to raise rates so they become restrictive as there is no inflation, so they are fumbling for a neutral funds rate. |
With payrolls so close, people are looking at risk/reward and deciding to be safe. |