It was a classic situation of sell on fact as the Fed
raised the Fed fund target rate by the expected 25bps. Economic
projections for the year were hardly changed with the exception of core
PCE inflation revised a little higher to 1.9% from 1.8%. Even so, there
is no fear of overheating at this point as the Fed expects “inflation…
stabilize around 2 percent over the medium term”. With the committee
still expecting only “gradual increases in the federal funds rate and
that the federal...