Jay Powell's first FOMC Meeting as Fed Chair brings a 25bps rate-hike (as expected, though there was a 24% chance of 50bps) and keeps expectations for 2 more hikes in 2018, but hiked its rate trajectory for 2019/2020 and replace "solid rate" with "moderate rate."
The market is hoping for 'goldilocks' as Powell faces the press and hopes to offer a 'not too dovish' and 'not too hawkish' perspective after hiking rates, and carefully signalling uncertainty over how much more is to come.
"...that’s how Trump won. It wasn’t the Russians, it was our own social media companies... It’s both horrifying, and cleverly brilliant at the same time... The funny thing is, Obama did something similar in 2012 and liberals celebrated."
Beijing has decided to increase the cost of oil storage to discourage pure-play speculators from flooding in the market and unleashing price volatility that could spell doom for the brand-new contracts...
"Either the Trump Administration is acting differently from prior administrations—clearly a possibility—or we should expect even more substantial trade restrictions when the unemployment rate eventually begins to rise..."
WTI/RBOB extended yesterday's gains this morning, after bullish API data, and continued higher after DOE data confirmed the surprise crude build and decent sized product draws. Production rose to a new record high.