Dovish surprise

• The Fed went beyond the market’s most dovish hopes, signaling it will extend a pause on rates through the year, and increasing the odds its next move will be a cut.
• The initial reaction in stocks was to rally, but that faded before the end of the session as investors digested the implications of the decision: If policymakers are this worried about the outlook for growth, then maybe traders should be too.
• It was a different story in the bond market, as Treasury yields fell, and bond prices across the world rose.

 (Source: Bloomberg)