Stocks surged, Yields Then, he swung sharply and the US Dollar The FOMC slumped Wednesday, but they have held their gains/losses thus far today. As expected, the FOMC raised their 25bp rate to 4.75%. This is the eighth consecutive hike. The Moderation & the lYou can have everything Overly hawkish or new from Powell’s comments and his acknowledgement of progress in the fight against inflation opened the door for bulls and a healthy short covering rally, even though he stressed that the labor market remains “extremely tight” and that inflation remains “well above our longer-run goal.”
The markets remain convinced that the Widely expected recession This year, it is likely that oil markets will be roiled once more.
The policy statement and Chair Powell’s press conference reiterated that “ongoing increases in the target range will be appropriate,” that rates need to be “restrictive for some time,” that it is too soon to declare victory, and that rate cuts are not in the outlook.
- The USD Index – The only real casualty of the markets’ dovish takeI have fallen. To 100.65 The continued decline in rate hikes since the FOMC decision is increasing the likelihood that the tightening cycle may be ending,
