Home Market Market Update – February 2 – A Continued Battle of Wills

Market Update – February 2 – A Continued Battle of Wills


Stocks surged, Yields Then, the drew in sharply. US Dollar They were down Wednesday, and are still holding their gains/losses today. As expected, the FOMC raised their 25bp rate to 4.75%. This is their eighth consecutive hike. The Moderation & the lDo not eat anything New or excessively hawkish 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 market remains convinced that the Widely expected recession It is expected to increase oil prices again in the coming year.

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 IndexWas 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,

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