KRE ETF
The S&P 500 has pared its gain to 5 points, or 0.15% after rising by more than 1% earlier. It's a disappointing turn that was foreshadowed by weakness in regional banks.
The market has been been able to get a footing or momentum in any direction since the FOMC decision. The hope was that Powell would signal a clear top but officials remain concerned about inflation and today's initial jobless claims data highlighted a still-tight employment market.
The bond market is also doubting Fed projections of a 5.00-5.25% Fed funds rate at year end. The 2-year is at 3.83%, down 14 bps on the day and Fed funds imply 3.98% at year end.
The message right now is that a recession is brewing and that the Fed is threatening to overdo it.
