- Stocks fell and bond yields rose as the Federal Reserve signalled that interest rates will remain higher for a longer period of time after deciding to remain on hold on Wednesday.
- The Nasdaq 100 was down 1.5%, led by big tech. The S&P 500 fell nearly 1%. Treasury two-year yields, which are more sensitive to upcoming Fed moves, have reached their highest level since 2006. Swap contracts anticipate fewer rate cuts in 2019 than previously anticipated. Losses were erased by the dollar. Following a rally that took Brent to $95 per barrel earlier this week, oil has retreated.
- The Fed maintained its target range for the federal funds rate at 5.25% to 5.5%, with 12 of 19 officials favouring another rate hike in 2023, according to updated quarterly projections. Policymakers also anticipate less easing in the coming year. Officials are "prepared to raise rates further if appropriate, and we intend to maintain policy at a restrictive level until we are confident that inflation is moving down sustainably towards our objective," according to Jerome Powell.
