Initial Calm After Fed Mtg. Followed by Another Tantrum

On Wednesday the Fed concluded its’ March meeting. It seemed as if Federal Reserve Chairman Jay Powell really hit a homerun, particularly since financial media had been commenting on the distinct possibility that another bond rebellion would result from his comments. The release of the SEP, or ‘dot plot’ also showed governors mostly dutifully in line with his devotedly and familiar dovish message. He appeared to have successfully threaded the needle and markets settled nicely up on Wednesday in the wake of his comments. On Friday, Jay Powell released an op-ed in the WSJ that markets seemed to like.

Thursday, however, was a different beast altogether. Financial markets were roiled by rates again. The 10YR spiked up quickly again, peaking at 1.753% on Thursday, before flirting with the mark again on Friday morning and settling around 1.73% by close. The Nasdaq dropped over 3% Thursday and the markets continued dropping into the close. Notably, small caps fell significantly as well. Oil prices declined over 7%.

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