S&P 500 slowly rising into the FOMC served to confirm the upcoming bullish interpretation of Fed moves. On one hand, the 75bp rate hike is over, on the other hand less clarity about future rate hikes rules now – markets remained anchored in the now, running with the glass is half full message. The part where Powell mentioned that an aggressive September rate hike is on the table if justified by incoming inflation data (an outsized September one won‘t happen in my view), got less scrutiny. And the same goes for his willingness to tolerate below-trend economic growth and some pain in the labor market.
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