Low impact

The Federal Reserve avoided a rate hike despite stronger-than-expected CPI data, while Goldman Sachs said both tails of the inflation/growth distribution have widened.

ZeroHedge10/24, 11:10 PM

Market impact

Which way this story pushes each asset. An inference from the story, not a measured move.

USD
Would push down
DaysMedium confidence
Fed holding despite hot CPI signals less urgency to tighten, which can cap USD support
US10Y
Would push down
DaysMedium confidence
A patient Fed amid inflation tolerance can ease pressure on long-term yields
Gold
Would push up
DaysMedium confidence
Wider inflation/growth risk tails increase Gold's appeal as a hedge

What could change this

If the Fed signals it is only pausing to await more data rather than tolerating inflation, the USD and yield pressure could reverse.