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Markets boosted amid Fed's 75 point rate hike decision

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Yahoo Finance Live breaks down the market reactions to Fed Chair Jerome Powell's press conference announcing a 75 basis-point rate hike.

Video Transcript

- The Fed Chair Jay Powell wrapping up his news conference after the Fed raised rates by 75 basis points. Let's take a look at the stock reaction, because you can see, in the intraday charts, or really right on your screen right now, Dow up 495 points, S&P and NASDAQ adding to earlier gains. Look at that, the NASDAQ up just over 4%. We initially saw that boost when Fed Chair Jay Powell was talking, after he said that it will likely be appropriate to slow pace of increases as rates get more restrictive.

Now Powell went on to say that the Fed wants to see quote "compelling evidence" that inflation is moving down, stressing once again the need to be nimble. He also added about the pace of future increases, saying that it will depend on incoming data and evolving outlook for the economy. He did, though, leave another potential large rate hike on the table, saying that another unusually large increase could be appropriate at the next meeting, depending on that data that he referenced numerous times during the press conference.

Dave, you and I were giggling a little bit here in studio because the reporters kept trying to press him about whether or not we are in a recession, what that would potentially look like. He did say he doesn't think that we are in a recession right now. But the question is whether or not Wall Street investors are buying it?

- Yeah, Jay Powell got worn out, because Steve Leishman tried to get him to find that recession. And look, we're going to hear that we're in a technical recession tomorrow, when in all likelihood, we get that negative GDP number, therefore two contracting quarters in a row, and for many, a definition of a recession. But he also couched that, Seana, by saying we're going to take those first GDP reports with a grain of salt.

So not only did he take four times to really define a recession, which he did not do other than to say we are not in one. He is seeing some cooling in the housing sector. He is seeing some cooling in terms of business investment and in consumer spending. But of course, in the face of that, the Visa earnings yesterday said I'm seeing unconstrained consumer spending. So to his point, there are all sorts of reads on this economy.