This FOMC was quite neutral, not hawkish. Simply put, this was not the type of FOMC the markets were fearing.
Key Points:
• Powell acknowledged risks to both the labor market and inflation — essentially signaling concerns about stagflation.
• Going into 2026, only one rate cut is projected. Powell is hinting at a pause in the rate-cut cycle, but overall FED members are heavily divided — so Powell’s signal doesn’t carry full weight.
• Treasury purchases are back and, according to Powell, will remain elevated for the next few months.
Market Expectations After This FOMC:
There’s nothing particularly actionable here. Both bulls and bears got their arguments.
However, since this FOMC wasn’t the fearful event markets were expecting, the “greed train” can continue without major pullbacks.
We remain bullish on markets.Although a healthy pullback would have been ideal. 📊🔥