RE: Difficult Fed decision

Markets waivered immediately following the Fed’s decision on Wednesday, but ultimately bonds rallied and the stock market fell on expectations that the economy will fall into recession and the Fed will cut rates later this year. At least that’s what markets read into Fed Chair Jerome Powell’s comments. The Fed’s actual base case projection calls for another rate hike and then a pause. Markets are reversing a little bit of yesterday’s move premarket. Its still all about the data and today’s initial jobless claims numbers show that the labor market remains strong despite worries over an impending recession.