The lens I'm viewing the Fed decision through isn't so much about the details. It's about the question of whether the Fed will ruthlessly hike rates until inflation is clearly broken, or if it will show some finesse.
The market is voting for 'ruthless' at the moment.
This year's dot implied 3.4% rates, which is only slightly below the 3.65% priced in.
US 2-year yields quickly erased today's dip. They've risen to 3.40% from 3.33% before the decision.
As you might expect, the dollar is also moving higher initially. With that, EUR/USD touched a fresh session low at 1.0360 but has come back by 15 pips in a sign of uneasiness.
The market will want to wait to hear from Powell before making a definitive move.
