Some were convinced there was no way Powell could surprise markets dovishly. They were wrong.

And to get a sense of just how dovish the Fed's statement was, look no further than the yield curve where everything to the left of the 7Y Treasury (and even that is in danger), is now inverted to the effective Fed Funds rate (2.40%), with 2Y and 3Y yields tumbling to 2.326%, and 5Y 2.3858%.

Needless to say this is a nightmare for banks, whose Net Interest Margin just got crushed. It also means that indeed as some were worried, the Fed may indeed know something about the economy that nobody else does, at least judging by the panicked bid for safety.