Financial markets faced turbulence following the Federal Reserve’s recent announcements. UMBS dropped significantly, with the 5.5% down by 33 bps and the 6.0% down by 40 bps. S&P futures also declined by 40.25 points. Global markets reacted to the Fed’s stance, leading to a “Fed tantrum” pattern. The labor market remains resilient, with jobless claims coming in better than expected. The Philly Fed index showed a decline, while its prices increased. The Fed’s commitment to a 2% inflation target was emphasized multiple times, indicating a potential longer period of higher rates. This could mean reduced interest rate volatility and tighter MBS spreads in the future. However, the inverted yield curve remains a concern. Existing home sales decreased, while the median house price saw a year-over-year rise. The market’s reaction post-Fed day suggests a momentum towards higher rates and yields. In other news, Re/Max settled two price-fixing lawsuits for $55 million, though the settlement amount for individual clients remains minimal.