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US dollar rallies, S&P 500, Dow Jones and Nasdaq tumble post FOMC
The Fed held their policy unchanged as widely expected, and pushed against an imminent hike at subsequent meetings. Whilst money markets had scaled back bets of aggressive tightening this year over the past couple of weeks, they were still trying to price in a March cut. But that is now dead in the water following comments from Jerome Powell. Regular readers will know that this has been my view, and that market pricing was too aggressively priced for multiple cuts given the strength of the US economy. Wall Street indices took this ‘revelation’ quite hard, with the S&P 500 suffering its worst day since ... (full story)