Federal Reserve, FOMC Talking Points:
- The Federal Reserve has announced their rate decision for the month of May, hiking rates by 50 basis points.
- This is the first 50 basis point hike since the last such move 22 years ago, in the year 2000 as the Federal Reserve tried to cool the excess of the dot com bubble. That, perhaps, worked a little too well as the dot com bust later that summer.
- This is a 'live article,' meaning that it will be updated through the rate decision and press conference. Each update is denoted with a time stamp from the time of update, and below will read in reverse chronological order.
- The analysis contained in article relies on price action[1] and chart formations[2]. To learn more about price action or chart patterns, check out our DailyFX Education[3] section.
3:00 PM ET
The US Dollar[4] is finally pulling back as Powell hasn’t been as hawkish as many had feared coming into today’s rate hike. The Greenback is now trading at a fresh weekly low, taking out a key spot of prior support around the 102.82 level.
US Dollar 30 Minute Price Chart
Chart prepared by James Stanley[5]; USD, DXY on Tradingview[6]
2:46 PM ET
More lift for stocks after Powell said that 75 basis points was not a consideration for the Fed and, instead, the bank was looking at 25 basis point hikes for upcoming meetings.
The S&P 500[7] has since jumped to highs of the session, highlighting the importance of expectations.
S&P 500 30 minute price chart
Chart prepared by James Stanley[8]; S&P 500 on Tradingview
