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Three key points on the FOMC’s hawkish surprise

Judging by yesterday’s policy announcement and Chair Powell’s press conference remarks, the FOMC doesn’t look to be in a hurry to change its policy stance. That points to somewhat higher Treasury yields and a flatter yield curve. It also supports our view that the dollar will continue to rebound. But we doubt a more hawkish Fed will be much of a headwind to the equity market.

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