US stocks fell late in their session with the Dow bearing the brunt finally closing down 265-points after the Fed warned investors that it now sees 2 rate hikes by the end of 2023 as their economy improves faster than originally anticipated. After the 2-day policy meeting rates were left unchanged in the target band of zero to 0.25% while they intend to maintain asset purchases until “substantial further progress has been made on employment and inflation”.
This shouldn’t come as a major surprise to investors as the US economy gathers strength and in our opinion this is reflected by stocks remaining less than 1% below their all-time high. However as we covered earlier the market is long and a quick 5-10% pullback wouldn’t surprise us but it would be a pullback MM would look to buy.
