The major indices are down between .09% and .50%, about where they were before the announcement.
From/via ZeroHedge, January 29:
Coming into today's FOMC meeting, consensus was that the Fed would unveil a dovish pause, instead what the Fed revealed was much more hawkish than many expected.
Below is a snapshot of some of the initial kneejerk reactions by Wall Street strategists and analysts.
Lindsay Rosner, Goldman Sachs Asset Management:
This is a new phase of the Fed’s easing cycle, given the strong growth and resilient labor market data providing scope for a more patient approach amid elevated data and policy uncertainty. The Fed’s easing cycle has not yet run its course, but the FOMC will want to see further progress in the inflation data to deliver the next rate cut highlighted by the fact they removed the reference on inflation making progress.
David Russell, Head of Market Strategy at TradeStation
The statement was a little hawkish, but policymakers are on hold with a long break until the March meeting. Data between now and then will set the tone for that next big decision. Today’s meeting is a non-event for Fed watchers. The central bank wants to be less of a factor over the next month as Trump takes the spotlight.
Ira Jersey, Bloomberg Intelligence US interest rate strategist
The Fed’s statement was somewhat hawkish relative to last month, so it isn’t surprising that the knee-jerk reaction was for some modest bear flattening (something we noted might occur in our preview)
Neil Dutta, Renaissance Macro
This press statement makes clear that the dominating risk is a passive tightening of monetary policy. The Fed is remarkably complacent. I don’t agree with their economic outlook. Housing is a mess and wage growth is slowing. Core inflation is likely to ease in the months ahead as rental disinflation comes more into focus....
....MUCH MORE
