The market reaction has clearly been dovish so far with the market now pricing in 81 bps in easing this year versus 75 at the time of the decision. US 2-year yields are down 7.3 bps on the day and the US dollar is at the lows.
That reaction makes sense to me as Powell certainly didn’t pivot to something more hawkish and a June rate cut is definitely in play.
All that said, there is a recent history of whippy moves and reversals after the Fed press conference ends so stay alert.
This article was written by Adam Button at www.forexlive.com. Source