The market faces far more sources of volatility than just the Fed.
The full post can be found here.
It's not just about the Fed
July 26, 2023 at 16:13 PM EDT
Mid-week market update: The market reaction to the FOMC decision was mostly a yawn. The Fed raised rates by a quarter-point, which was expected, and Powell refused to commit to further hikes while repeating his data dependency mantra. As a consequence, the S&P 500 was mostly unchanged from before the decision to after the close. However, the 2-year Treasury yield, which is a proxy for Fed Funds expectations, did ease a little. Fed Funds expectations were mostly unchanged, other than the first easing was pulled from the May 2024 FOMC meeting to March.
