Equity markets wobbled on Wednesday following the Fed's 25 basis point interest rate hike. The hike puts the base rate at 550 basis points and the highest level in over 2 decades. The statement indicated a possible pause at the next meeting but left the door open for another historic interest rate hike later this year. The data-dependent Fed will watch the inflation data for its next cue, and the next release is just around the corner.

The PCE price index is due out tomorrow and may alter the Fed's trajectory. The index is expected to moderate from the previous month, the question is by how much and if the decline will be sustained. As it is, the price of oil is on the rise, and oil underpins the cost of everything. With it on the rise, it is likely that inflation will remain hot, if not accelerate and lead the FOMC to raise rates higher and higher. Regardless, there is little expectation for a rate cut until 2024 if then.