As expected, the Fed removed the word “patient” from their statement on Wednesday and financial markets responded. The Dow Jones Industrial Average rose roughly 200 points (1.3%) in the seconds after the Fed released their statement. Other indexes also responded: the S&P 500 increased 1.2%, the Nasdaq increased 0.9%, and the Russell 2000 increased 0.8%. Fed Funds futures suggest investors see a 23% likelihood of rates increasing in June, compared to the 40% likelihood before the Fed’s statement. Odds for a September increase fell from 111% to 80% according to Fed Funds futures. There has also been a noticeable effect on the bond market. The yield on 2-year notes fell from 0.669% to 0.560%, and investors went into longer-term U.S. bonds. The 10-year note’s yield fell below 2% to 1.945%. On the other hand, the dollar suffered experiencing its biggest one-day decline against the Euro since March 2009. The dollars intraday fall comes in context of the dollar’s 27% gain against the euro in the past year. Wednesday was an exciting day for the markets, but what do you think about the effects of the Fed’s statement?