3 trading days after the FED – who wins, who loses?

The dust is slowly settling after the FED's historic decision. How are individual asset classes doing? – see Table 1. Stocks are winning and bonds are losing. The dollar weakened at first, but today it strengthened after the ugly European PMIs (so the balance is at zero).

In terms of stocks, the Nikkei225 (+3.7%) and Hang Seng (+3.3%) are winning, but so is the Nasdaq100 (+2.1%).

Gold +2.2% and Bitcoin +5.7%!

From currencies, the Yen weakened and the Chinese Yuan strengthened. The 10Y UST yields rose and the 2Y fell.

The FED lowered the rate by 50 bps, but also significantly lowered the path of the projected future rate – see Figures 1 and 2. However, the (historical) accuracy of such a forecast/path is low.

The Fed also lowered its own PCE inflation projection – see Figures 3 and 4.

The Fed also raised its own unemployment rate projection – see Figures 5 and 6.