Redline Fed Lines

You'll never say hello to you
Until you get it on the redline overload
You'll never know what you can do
Until you get it up as high as you can go
--Kenny Loggins

Yesterday the FOMC raised the Fed funds rate 75 bips as telegraphed. The overnight rate target now stands at 2.25-2.50%.

As is common anymore, the FOMC statement was 'redlined' for wording changes from the previous statement.

The only substantial change was the first sentence, which went from discussing economic strength to signs of economic weakness.

Couple that with the subsequent statement that the Fed is prepared to adjust its policy stance if risks emerge that threaten the attainment of the committee's goals, and you get early signs of a dovish pivot.

Reaching? Perhaps, but markets are partying on the prospects thus far.