It was a big week in stocks as the Tuesday CPI report brought a reversal scenario into the equation that got another shot-in-the-arm on Wednesday at the FOMC rate decision. Hopes for a FOMC pivot into rate cuts were dashed as Powell struck a hawkish tone, warning that the Fed ‘has a ways to go’ with inflation. And this really furthers the theme that’s been pushing stocks throughout this year: The Fed hikes to address inflation, markets get hopeful that the Fed has done enough, or at least made a push towards that end, and then matters reset as US data remains strong which illustrates that the Fed is, in fact, not yet done.
