Market starting to lose faith in the FOMC, says Janus Henderson's Michael Contopoulos

• The Fed left rates unchanged, leading to a significant market drop (Dow's worst day since April 2025 - likely a typo, implying a recent worst day).
• Treasury yields rose across the curve (especially the long end), gold increased, and the dollar index fell, indicating market concern about inflation and the Fed's perceived inaction.
• Analysts believe the Fed wants the market to 'do the work' on inflation and is not providing clear guidance, leading to a 'bear steepening' and a loss of market faith in the committee's ability to address high growth and inflation effectively.

The discussion centers on the market's negative reaction to the Fed leaving interest rates unchanged, with key indices dropping significantly. Analysts suggest the Fed is behind the curve on inflation and is providing less forward guidance, leading to market confusion and a 'bear steepening' in bond yields. The market is seen as losing faith in the Fed's approach to tackling inflation.