Risky asset markets fell as expected while Treasury yields were unchanged and the dollar was volatile after the United States Federal Reserve (Fed) raised rates by 50 basis points.
For now, the Fed is meeting the forecast with interest rates at 4.50% with President Jerome Powell issuing a dovish statement for 2023.
Powell commented that recent inflation data showed a welcome contraction but that it was not enough to bolster confidence in the continued decline in price increases.
Previously the consumer price index rose 0.1% last month, 0.2% slower than economic expectations and for the 12 months to November inflation rose 7.1%.
Even so, the equity market suffered a decline with the Dow Jones Industrial Average falling 0.4%, the S&P 500 losing 0.6%, and the Nasdaq Composite down 0.76%.
In Europe the STOXX 600 fell 0.02% after rising 1.3% in the previous session while the global MSCI index slipped 0.2%.
This morning in Asia saw the S&P/ASX 200 fall 0.43%, Japan's Nikkei 225 fell 0.2% while shares in South Korea were flat ahead of the country's inflation reading.
Chris Zaccarelli of the Independent Advisor Alliance comments that the Fed appears to be reluctant to take risks even as inflation data appears to be declining, in addition to continuing to signal tightening.
