Fed Sticks To The Script, But Markets Still Head South

[Chart courtesy of MarketWatch.com]
- Moving the market
The market spent most of the day fixated on the Fed, and in the end, Chair Powell & Co. stuck to the script with a quarter-point rate hike.
That outcome may not have been exciting, but it removed the risk of a surprise, which is usually a good thing because Wall Street tends to react to surprises the way cats react to vacuum cleaners.
Even so, traders weren’t exactly in a buying mood. Stocks faded after the announcement, bonds sold off, and yields moved higher as the dollar climbed to a one-month high.
On the bright side, oil also headed lower, providing at least a little relief after diesel prices topped $6 a gallon and crude spent time above $100 a barrel.
The Fed’s message was pretty clear: inflation remains the main concern, while worries about rising unemployment appear to be taking a back seat for now.
The real question is whether today’s move was a one-and-done adjustment or the first step in a new tightening cycle.
What will traders focus on next: inflation, growth, or the path of future rate hikes?
Read More




