The hawkish pause – signaled by the dot-plot – prompted a kneejerk surge in rate-change expectations with July now pricing in a 70% chance of a hike and September a 95% chance of a hike as December and January have now priced out any rate-cuts…
Source: Bloomberg
Stocks immediately tumbled, led by Small Caps…
Gold was also dumped on the hawkish signal…
The dollar spiked back to almost unchanged on the day after tumbling on the weak PPI…
Source: Bloomberg
The question is, will Powell reverse all this?
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https://www.zerohedge.com/markets/stocks-gold-slump-after-hawkish-fed-sends-rate-hike-odds-soaring
