The FOMC "dots" are bullish for stocks. They retain the 3 hikes in 2018, implying only 2 more this year after today's 25 BP hike. The FOMC did lift its expected funds rate in 2019 and 2020. But the market pundits are making too much of this, as it so far into the future to make it almost meaningless. More importantly, the more cautious expectation for 2018 means that the Fed is willing to tolerate faster economic growth this year -- a very big positive for the stock market.
If the US economic data turn mixed, as discused in my prior blog, this gradual approach for the year may remain even at the June FOMC Meeting.
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