On the Zoom

Well she ran into this guy
Who was down at 54
Had a lot of gold and chains
And he got her in the door
And he knew so many people
Who made her lots of pretty promises
--Don Henley

FOMC announces 50 bip hike in the fed funds rate and QT to being on June 1. QT will be capped at $30B in Treasuries and $17.5B in agencies/MBS for the first three months, and then doubled after that.

Let's see, $90B monthly in runoff on a $9T balance sheet--with the stipulation that the Fed intends to "maintain securities holdings in amounts needed to implement monetary policy efficiently and effectively."

Seems to me that the FOMC is signaling that the it will take its sweet time pulling down its balance sheet--inflation or not.

Maybe that's why stock and commodities are zooming post announcement.