The Daily Chase: Markets digest Fed hike; Canadian bank tax back in the spotlight

​Equity markets have been all over the place since 2:00 p.m. EDT yesterday as investors, traders, and algorithms struggle to find conviction in their interpretation of Jerome Powell’s words and the U.S. Federal Reserve’s dots.

We’ll keep trying to clear through the fog of monetary policy, notably with RBC Capital Markets Chief U.S. Economist Tom Porcelli at 9:00 a.m. EDT and ex-Pimco Head of Portfolio Management Ed Devlin at 1:00 p.m. EDT.

Best comment I’ve heard since the Fed’s decision yesterday was from our pal at Bloomberg, Vince Cignarella: “(The market is saying) ‘You know — We love you, Jay; but we still remember [transitory] inflation. So we're not hanging our hat on everything the Fed says these days."

The extraordinary times for central banks know no borders. This morning we’ve seen a second consecutive half-point hike by the Bank of England (in a split vote, where three voting members wanted to move even more aggressively); and the Bank of Japan’s stand-pat approach prompted that country’s government to intervene in the currency market to prop up its currency.