What does The Fed's change in tune mean for markets?

In my last blog post in January, I wrote about how the US Federal Reserve reversed course to a more dovish tack. The most recent Federal Open Market Committee (FOMC) announcement and press conference with Chairman Jerome Powell show the Fed has continued with its dovish communication plan, and solidified its message that monetary policy is on a very different course than it was at the December meeting. There was a strong market reaction to this last Wednesday, with equities higher, the US dollar weaker and the US Treasury curve steeper, as front-end yields lead the way lower. In parti...