The Federal Open Market Committee interest rate policy decision is out, and the immediate market response is positive as pundits parse the report. The Fed leaves rates unchanged and states that it will soon be appropriate to raise rates. Asset purchases will end in March.
None of this is surprising news, and we will have to wait for the Jerome Powell press conference in a few minutes to provide some nuance. What the market really wants to determine is how many rate hikes there will be and the level of the Fed's hawkishness. Market players will be watching for any hedging in Powell's comments, but given how long he stuck with "transitory" inflation, it is unlikely he is going to rush to shift policy again.
The market isn't doing much on the news, and that may be a sign that the rate hikes are already discounted to some degree. I suspect that traders are looking for an opportunity to buy a dip, but so far, there isn't one developing, and that can easily turn into some FOMO buying if it persists.