Yesterday’s Federal Reserve (Fed) decision was relatively hawkish – depending on where you are coming from (I am coming from a bank crisis).

The Fed raised the rates by 25bp, as broadly priced in, but Fed Chair Jerome Powell signaled that there would be another 25bp hike on the wire before this tightening cycle ends. QT and dot plot were unchanged.

Stocks fell, while Treasuries rallied as a sign that not everybody interpreted the Fed decision equally dovish, or hawkish.

US futures are in the positive at the time of recording. It is well possible that the post-FOMC equity selloff quickly reverses, at the falling yields is supportive of equity valuations – if financial stress is contained and economic data is not too bad.