Markets React To Hawkish Fed
The Fed doused any hopes of a Santa Rally last week with hawkish language following their last meeting of 2022.
The Fed doused any hopes of a Santa Rally last week with hawkish language following their last meeting of 2022.
The Fed decided to dash the hopes of equity bulls this week as it announced a highly expected 50 basis point rate hike, but also signaled more rate hikes and a higher median/terminal rate.
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Despite the lack of Fed speakers, markets pulled back on rate hike and recession fears.
Markets have turned back to the "good news is bad news" framework this week, despite no Fed speakers and nothing to contradict Fed Chairman Powell's statements of last week.
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