At 2:00 PM EDT yesterday the FOMC announced a much-expected 75bps rate hike and distributed meeting minutes that were primarily inline with market expectations. As you can see in the chart below, the S&P 500 immediately rallied on this news, but then sharply dropped when Jerome Powell started speaking during his press conference.
We all know that the FOMC committee members run to their Bloomberg terminals immediately following any rate announcement, and we conclude they did not like the bullish market response yesterday.
Why do we make this conclusion?…
Listen to Powell’s words from the press conference and read the minutes that were put out just beforehand — we felt his speaking tone was far more hawkish than the minutes reflected.
Perhaps Jerome was checking his messages from colleagues while at the podium. :-)
If any case, we continue to monitor the markets response as we do our best to keep you informed and manage our portfolio accordingly.
IN CLOSING
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