Skip? Or skid?

The market knows the Fed is flying blind and pushing things too far runs the risk of causing the economy to skid to a stop. 

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Skip or Skid?
Welcome to the Know the Difference Minute for Wednesday, June 14th.
The Federal Open Market Committee held its policy rate target between 5% and 5.25%. It wanted to make sure everyone got the message that it is skipping a hike and not stopping future hikes. The Fed indicated it could hike twice more this year. Investors did not like that message, the knee-jerk response was to see equities and bonds sell off.
Why? Probably because the market knows the Fed is flying blind and pushing things too far runs the risk of causing the economy to skid to a stop.
Don’t be distracted by this, though. The Fed could easily change its mind by the next time it meets towards the end of July. Remember, these aren’t forecasts, they’re wild guesses from the Fed. Keep your cool even if the markets seem to be losing theirs by having a plan and sticking to it.
I’m Brian Jacobsen, Chief Economist at Annex Wealth Management. That is your Know the Difference Minute.