The FOMC left rates unchanged, given cover by the Durable Goods Orders and the Treasury Department's Brexit quotes.
0.25% to 0.50%
Rates will rise gradually.
New line: Near term to risks to the outlook have diminished versus 'risks balanced' since December.
Closely monitoring world financial conditions.
Economy upgraded: Moderate rate versus 'picked up'.
Jobs: Market stronger. 'Some increase' in labor utilization in recent months.
Household spending growing 'strongly.'
On balance, a bit more hawkish, and I suppose that will have tongues wagging that rates will be hiked. Things have improved according to the Fed, with apparently 'transitory' factors diminishing. It certainly looks as a shift back to hikes and they are already saying it 'opens the door' for September and/or December hikes.
Initial market reaction was to new session lows, but they are right back up to where they were at zero hour release time.
Bonds pre-FOMC: 1.53%. Immediately after 1.54%
All but NASDAQ were lower heading into the number, NASDAQ up thanks to AAPL's gains. Back and forth as usual post-FOMC, and it takes some time to digest it. Of course the outcome today does not necessarily have any bearing on Thursday: recall the selling post-FOMC two meetings back that turned into a big rally the following session. Is good actually good or is good bad as it implies less central bank support? Bonds are slightly moving to the latter but nothing major thus far.
SP500 -6.77, -0.31%
NADAQ 18.15, 0.36%
DJ30 -14.28, -0.08%
SP400 -0.65%
RUTX -0.16%
SOX -0.21%
NASDAQ 100 0.54%
Trying to firm up and bounce off the session lows. Hang on.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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