While Goldman was mostly delighted with the Fed's statement, Evercore ISI is far less sanguine about what the Fed revealed today,
More hawkish than expectations...investors we have talked to understood that the "supertanker" that is Fed policy was likely to turn, but was more likely to wait in forecasting a faster pace of rate hikes until till the new administrations fiscal policy plans became clear. Since the Fed did not even wait to raise the DOT plot until fiscal plans became clear, will the reality of tax-cut fiscal policy increase the DOT's even further at some point?
Market expectations for rate hikes are still behind the Fed. With German 2yr rates -0.72% and the U.S. 2yr making very little sense at 1.2 if the Fed funds rate is going to be above 2% in 2018, upward pressure on the USD should persist.