Fed policy reset and macro rate risks
Key Questions
What did the Fed decide regarding interest rates in its latest meeting?
The Fed held rates steady, removed its easing bias, and signaled a possible hike in the dot plot while raising the inflation forecast to 3.6%.
How are markets now pricing future Fed rate actions?
Markets are pricing in two rate hikes following the Fed's updated signals.
What warning did Tom Bowley issue about summer market action?
Tom Bowley warned of summer consolidation risk amid the shifting policy backdrop.
How did the market react to Warsh's hawkish presser?
Warsh's hawkish presser spooked risk-on sentiment, though the S&P 500 held the 7500 level.
What economic data contributed to the volatility?
Import prices surged in May, adding to inflation concerns alongside the Fed's revised forecasts.
Why did oil fall below $80?
Oil dropped below $80 following the US-Iran peace deal.
How did major indices perform after the initial Fed sell-off?
Markets rebounded from the Fed sell-off, with the Dow rising 200 points.
What technical pattern did Ilya Spivak highlight in the S&P 500?
Ilya Spivak pointed to a double top formation in the S&P 500.
Fed held rates steady, removed easing bias, dot plot signals a hike, inflation forecast raised to 3.6%. Market now pricing two rate hikes. Fed rate-hike bets fuel equities rally (The Close 6/18). Tom Bowley warns of summer consolidation risk. Warsh's hawkish presser spooked risk-on sentiment but S&P 500 held 7500. Import prices surged in May. Oil below $80 on Iran peace deal. Market rebounded from Fed sell-off, Dow up 200. Ilya Spivak highlights double top in S&P 500.