Wall Street Reacts To Fed's First Hike Since 2023: A "Dose Of Accommodation" Out, A Dose Of Selling In

Amid a deluge of Wall Street reactions to the first Fed rate hike in three years, we have picked some of the more notable ones, starting with WSJ's Nick Timiraos, who pointed to Warsh's description of what Wednesday's rate increase was meant to do: "We removed a dose of accommodation so that financial and credit conditions would be more consistent with our ultimate objectives."

That phrasing, according to Nikileaks, ordinarily would suggest "officials view policy as still easy even after Wednesday's move" although Warsh dismissed that interpretation when asked where rates now stand relative to r*star - the unobservable, theoretical rate that economists think neither spurs nor slows growth. He said the academic concept didn’t translate well into the “decisions that we make today.”