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Fed dovishness may have stopped soothing market

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The dovish Fed may have just injected a bit more volatility into markets.

The central bank Thursday held off raising rates, which would have ended a nearly 7-year-old zero interest rate policy. But while markets had given low odds to a rate rise, about half of Wall Street's economists and strategists were expecting a hike. After the news, bonds rallied, with interest rates falling, but stocks traded with wide swings before the Dow and S&P 500 closed lower and the finished higher.

Markets heads into Friday with a new view of the Fed's path to higher rates, and the promise of superlow rates for a little while longer. Odds have also risen that the Fed will now not hike rates until 2016, and RBS says the markets are currently pricing the first full rate rise for March but odds for December were still above 60 percent.