The Fed’s earlier projection for four rate hikes was distinctly at odds with market expectations. Now, with the Fed giving ground, much of that tension has been resolved, analysts say.
“Now, we can say that market and the Fed are on the same page. The statement overall was very dovish even though, it was expected that it could be hawkish, but unquestionably, the Fed does not want to experience what they had to face at the start of this year – a revolting and grisly equity market,” said Naeem Aslam, chief market analyst at Ava Trade, in emailed comments.