Target, Amazon and Etsy rally on hopes the Fed can thread the inflation needle
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Target Corporation (NYSE:TGT
+3.3%), Etsy (ETSY
+5.5%), Amazon (AMZN
+4.6%), Wayfair (W
+3.3%), Chipotle (CMG
+5.3%), and Bath & Body Works (BBWI
+4.0%) were some of the notable gainers in the consumer sector after the FOMC raised interest rates by 75 basis points in the biggest increase since 1994.
Traders think the aggressive stance by the Fed with more rate hikes tipped for the rest of 2022 has taken some of the edge off the worst-case recession fears for 2023 if the Fed let inflation run rampant.
"It is essential that we bring inflation down" in order to maintain a sustainable strong labor market and an economy that works for everyone, noted Federal Reserve Chair Jerome Powell at the press conference on Wednesday.
The last time the Federal Reserve raised interest rates by 75 basis points at one meeting was in November of 1994.The central bank managed a soft landing for the economy after a series of hikes over more than a year.
Read more about the Fed's actions.