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Markets Back to Pre-FOMC Levels

US TSYS
Stocks now rallying (for the moment) after initial selling sent SPX to 3836.75 low. Hawkish forward guidance weighed on equities and helped push 2YY to new 15 year highs of 4.1168%, yield curves extending inversion (2s10s -52.492 low).
  • But flipside to hiking to is prospect of cutting rates as price stability and inflation comes back to 2.0% target helping current rebound with SPX tapping 3918.75 high.
  • Timing of Chair Powell comment on Recession risk: "no one knows whether this process will lead to a recession or if so, how significant that recession would be," coincided with dip in stocks to 3890.0.

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