A quick brief on the results of the US Federal Reserve meeting | 🚀 Robin Rocket

A quick brief on the results of the US Federal Reserve meeting and the speech of its head Powell

All results were expected by the market:
- the interest rate was left unchanged
- banks were allowed to expand the placement of resources at the Fed using repo (just so that they could fit into the limits).
- clear expectations have been formulated to start curtailing monetary support immediately after the next meeting (November 3)
- QE is expected to be phased out by the middle of next year.

In general, everything is as expected.

In macroeconomics, high inflation is expected to persist and inflation expectations have slightly worsened.
The phrase “FRS MORE THAN ACHIEVED WHAT WANTED IN INFLATION” sounds great. As if the Fed planned to provoke a shortage of chips and disruptions in supply chains with its monetary steroids.

For the beginning of winding down, FRS is waiting for confirmation of a good situation on the labor market. Now the demand for labor (in the US) is high.

It is "imperative" that the US national debt ceiling be raised in a timely manner. The Fed is unable to "fully protect markets or the economy in the event of a default."
Powell was not afraid to name the word "default" in the context of the United States. Apparently, his squabbles of politicians got it. The latter are fighting, and the Fed has to deal with the problems.

In the near future, the Fed's report on digital currencies will be published.

FIRST MARKET REACTION - Mostly Neutral
Stocks - generally respond positively to the Fed's optimism on the US economy.
Government bonds - a little cheaper, but just returned to the level of morning quotes.
US dollar - slightly increased in price (lower QE means less dollar inflow).

And remember that the real reaction of the markets to important Fed meetings is usually on the second day. After the strategists will take every word to pieces and give their verdict.