The report from Fed anointed reporter, the WSJ’s Jon Hilsenrath Tuesday was correct the statement interest rates would remain low for a “considerable time”. Tuesday after the market’s closing Hilsenrath modestly retracted his statement to suggest his comments were based on a sense that this report would include that comment.
There’s an old maxim in markets when dealing with Fed releases which includes “the first move’s the wrong move”.
That held true Wednesday as after the statement markets dropped only to rally sharply later. As we tweeted early today, Tuesday (with the Hilsenrath leak) became Wednesday. In a rather defensive move stocks sold-off rather sharply into the close with a gain. Overseas markets were much weaker.
Other news on the day