The FOMC announcement to raise the target Fed Funds rate by 25 basis points to 1.25% was largely priced into the market.
However, the “hawkish” guidance about further upward adjustments and the specific plans to reduce the FED’s $4.5 trillion balance sheet have raised concerns about current stock market valuations and the impact of tighter monetary conditions.
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The major US indexes were mixed with the NASDAQ down .50%, THE Dow Jones 30 up .25% and the SP 500 down .10%.
US Energy stocks were all lower as Crude Oil prices slumped on a downbeat assessment from the IEA and increased production from both the US and OPEC nations.
The front month WTI Crude contract closed down over 3% to $44.65, which is the lowest closing price in over 18 months.
As a result, shares in both BHP and Oil Search have opened more than 2.5% lower.
