The markets’ immediate response to the Fed’s hike on Wednesday included an impressive run-up in stocks and significantly lower yields on U.S. government bonds. Some market observers hailed the benefits of a “dovish hike” by a “Goldilocks Fed.” Others cautioned against overextrapolating from what was mainly a technically-driven move. In assessing these and other views, here are six things you should know about the drivers of this unusual market reaction and some implications for what may lie ahead.
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