Investors are pouring money into corporate bonds, risk premiums are grinding tighter, and the Federal Reserve’s interest rate cut is reigniting hopes the US will dodge a recession.

Federal Reserve Chair Jerome Powell is known for providing clear signals about the central bank’s next interest rate move in order to avoid roiling markets. But Wall Street was mostly clueless this week when it came to predicting how big a rate cut the Fed would deliver on Wednesday.

After the Fed’s pivotal interest rate cut this week, policymakers face the question of how much further to reduce borrowing costs, and how fast.