How powerful is the Federal Reserve? More powerful than an atomic bomb.
That’s what the stock futures are saying as news that North Korea has successfully launched an Intercontinental Ballistic Missile (ICBM) capable of hitting US soil with a nuclear warhead.
Bond prices and equity futures shrugged off news of Kim Jong Un’s July 4th fireworks test launch, despite world leaders and the United Nations moving quickly to avert further developments.
The Fed’s global reach could be felt as well since most Asian and European markets manged to post green numbers as ICBM launch news broke.
The North Korean leader, who is more unstable than Uranium 239, said of the launch, “American bastards would be not very happy with this gift sent on the July 4 anniversary.”
The bigger driver of Wednesday’s markets is the release this afternoon of the Fed’s June meeting. Markets will be looking for clarity of the Fed’s easing on purchases as it looks to begin paring down its balance sheet.