The market is likely to find enough underpinnings in the FOMC statement to lessen fears of Fed tightening in the next several months.
All these things worked together to cause the market turnaround. There was a sense that the selling had been way, way overdone beyond any rationale. The economy is still weak and the Fed is going to ease.
When push comes to shove, the Fed will opt in an unmistakable fashion to preserve the inflation achievements they have. They will be very willing to sacrifice some growth for a while to keep inflation under control.
The data shows an undiminished appetite on the part of foreigners for U.S. securities, which means there's still a healthy demand for U.S. dollars that more than offsets the trade deficit.
They are confirming in their own subtle way there are some more moves ahead, whether it is one, two or three rises.
A reasonable interpretation is they're going to go again in May unless the ( economic) numbers make a compelling case against.
