Market Alert - FOMC Decision

25BP Fed Funds Futures rate hike to 0.50%.

Unanimous decision.

Increased rate outlook, adding a single hike to 2017. Now 3 hikes that year.

Risks to the economy are roughly balanced.

Labor: Policy supports only slightly further increases.

Economy to increase at a modest pace, business spending soft, household spending modest.

Inflation: Increased versus "increased somewhat" in the prior statement.

Hawkish but not really all that hawkish. No timetable of hikes, just raised the number to 3 in 2017.

The presser is to come . . .

Market was down on the news but has bounced back to where it was when it hit: slightly higher. It looks as if this is going to be well-received after an initial drop on the increase to 3 hikes in 2017.

SP500 2.8, 0.13%
NASDAQ 10.24, 0.19%
DJ30 44.40, 0.22%
SP400 -0.19%
RUTX -0.60%
SOX 0.47%

As expected, the large cap stocks and indices are performing better today.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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