Daily Summary: Hawkish Fed sends Wall Street lower

• FOMC delivered a 50 bp rate hike, in-line with market expectations

• Median dot-plot moved from 4.6 to 5.1% for 2023, from 3.9 to 4.1% in 2024 and from 2.9 to 3.1% in 2025

• GDP growth forecast for 2023 was trimmed from 1.2% to 0.5%. Unemployment rate projections slightly higher in 2023, 2024 and 2025. Core PCE expected to drop to 2.1% in 2025

• Powell said that there are no rate cuts projected for 2023 but Fed is getting close to sufficiently restrictive rates level

• Wall Street indices erased daily gains after the Fed decision and moved lower. Declines were deepened further during Powell's presser. S&P 500 dropped and traded near 4,000 pts mark before recovering most of the losses by the end of the presser

• European stock market indices finished today's trading lower with German DAX dropping 0.26% and French CAC40 moving 0.2% lower. UK FTSE 100 dropped 0.1%

• Some media reports claim that tomorrow's ECB projections won't show euro area inflation returning to target by 2025

• DOE report showed a massive 10.23 million barrel build in US oil inventories (exp. -3.9 mb)

• Headline UK CPI inflation slowed from 11.1 to 10.7% YoY in November while core inflation slowed from 6.5 to 6.3% YoY (exp. 6.5% YoY)

• Precious metals traded higher with silver adding over 1% and platinum gaining 0.5%. Gold adds just 0.1%

• CHF and EUR are the best performing major currencies while NZD and USD lag the most

S&P 500 (US500) had a wild ride this evening. Index plunged on FOMC decision announcement before recovering most of the losses after Powell said that Fed is getting close to sufficiently restrictive rate levels. Source: xStation5