Fed Watch

What Does The Fed’s November Hike Mean For Markets?

"As investors, we also always have to be aware of our innate and very human tendency to be fighting the last war. We forget that Mr. Market is an ingenious sadist, and that he delights in torturing us in different ways." - Barton Biggs

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The Federal Reserve held their highly anticipated November FOMC meeting on Wednesday. As expected, the world’s most important central bank conducted their fourth consecutive 75-bps hike. However, expectations for some rhetoric indicating a gentler path for rates going forward were dashed. Markets initially rose on some language from the statement that appeared to open the door for a more moderate path. Powell used the press conference to disavow these hopes of a pause or a pivot and quite directly answered them. “It is very premature to be thinking about pausing,” said the Chairman.

It was a whirlwind for even the most seasoned pros on the Street and was likely a key inflection point in the Fed’s continued efforts to restore price stability. It’s an existential fight, as Mr. Powell pointed out in the beginning of his statement, “Without price stability, the economy doesn’t work for anyone.” Our Head of Technical Strategy, Mark Newton provides his thoughts on the initial price action and the technical state o...

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