The new Sept FOMC is more hawkish than the June FOMC. The terminal rate for 2022, 2023 is increased and from the dot plot, there is no plan to decrease the rates until 2024, which match with what Powell talks about holding the higher rates for a longer time. The GDP growth is also revised downwards while the unemployment rate is revised upwards. Generally, all these are bad news for the market. As usual, short term market movement for the next few days will be unpredictable. Basically it will depends on how the media wanted to interpret the FOMC data and Powell speech. But for the next 3 months, at least we can be sure the rates will go up another 1-1.25%. Not favourable for the market and may cause the market to test the low in June or even break lower... Be cautious if one is buying the dip. Control your allocation and practice risk management.
US STOCKS-Wall Street Slumps As Investors Absorb Hawkish Fed Rate Message
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- WendyDelia·2022-09-23I agree "Be cautious if one is buying the dip." there is no dip at all1Report
- ChrisColeman·2022-09-23Watch, learn and think! Better than long or short now.LikeReport
- EvanHolt·2022-09-25It seems they will do anything to ease inflation.LikeReport
- HilaryWilde·2022-09-25You're right. Now is the time to be risk averse.LikeReport
- Maria_yy·2022-09-25No one expected DOMC to take such a hard line.LikeReport
- greyGrey·2022-09-22lim ls handsome boyLikeReport
- CherryPang·2022-09-22[shy] [shy]1Report
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