Dow clocks fresh session high after Fed maintains outlook for three rate hikes this year

Dow Jones jumped to a fresh session high of 21,378 after the Fed hiked rates by 25 basis points and disappointed doves by keeping the outlook for three rate hikes this year unchanged. 

Fed no longer data dependent…

The recent economic data have clearly shown the Q1 weakness isn’t transitory. Still, the Fed has not revised its inflation forecast lower. The bank still sees a scope for another rate hike in 2017. Thus, the central bank no longer appears data dependent. 

The rate hike/policy tightening looks more like an effort to build firepower before the next recession hits the US economy. 

The Dow Jones index was last seen trading around 21,360; up 30 points or 0.14% on the day. S&P 500 was flat lined around 2348 levels, while the NASDAQ was trading sideways around 6216.372.