Market Sends Scathing Message to Fed: You Blew It Already

The Federal Reserve's decision to keep interest rates on hold has sparked a strong market reaction. Despite only a 35% chance of a rate hike, investors reacted as if the decision was unexpected. The long bond yield surged to its highest level in 19 years.

Fed Chairman Kevin Warsh struggled to justify the Fed's pause, stating that it wasn't a pause at all. However, market participants disagreed, with one analyst commenting that 'the markets have done quite a bit' since the last rate decision.

Warsh also attempted to downplay the significance of the market reaction, saying that interpreting markets is an imperfect business and that the Fed will continue to monitor the markets before making its next move. However, this response has been met with criticism, with one observer noting that 'nobody is saying the markets didn't react. What we are saying is the Fed is ignoring the markets and doing what it wants.'