This week has been busy from every angle for investors, but one of the main expected events was the FOMC. In their battle against inflation, the amount of basis points they were going to hike today has been a daily conversation. Ahead of their quiet period, 75bps seemed the likely outcome (Bostic, Daly and Bullard were in agreement). Without a WSJ article suggesting a change in tactic this week, the Fed raised rates by 75bps, surprising no one. Like the Fed, markets have been monitoring economic data and its recent deterioration, and have rallied this month in anticipation of future rate cuts in 2023 by Powell. This has led Growth to outperform Value by 210bps as of yesterday’s close, and that lead accelerated today to close at 490bps.
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