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Making Sense of the Equity Market’s Reaction to FOMC Minutes

Making Sense of the Equity Market’s Reaction to FOMC Minutes

The FOMC January meeting minutes were the most awaited event of the week, and the market reaction to their release was more than dramatic. The initial reaction to the FOMC minutes was as though the FOMC members were not hawkish enough, and this led to a spike in equities and the US dollar (UUP). Rising interest rates make borrowing expensive for companies.