Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action news and analysis.

Good afternoon. Today is Wednesday, May 1st, and I'm your host Kim Khan with a special Fed edition of Wall Street lunch.

Our top story so far. The Fed came with a surprise dovish playbook.

The FOMC kept rates on hold as most everyone expected, but a surprise on the Fed's

balance sheet reduction and Chairman J. Powell's confidence that another hike this year is

a no-go surprised traders after the hawkish data seen in April.

That gave the risk-on crowd something to hold on to.

A pop inequities was short-lived though.

As has been the case lately, profit-takers jumped in as soon as Powell stopped speaking.

The S&P and Nasdek ended in the red, despite earlier gains close to 1%.

Treasury yields fell, but were off their lows.

The 10-year was back down below 4.65% and the two-year slip below 5%.

Michael Brown, Senior Research Strategist at Pepperstone FX, told Wall Street Lunch after the press conference

that it was more of the same for Powell and Company.

With a rate cut still the committee's likely next move, as focus remains on the duration for which the current level

restriction needs to be maintained rather than another rate hike

being necessary. In its statement the Fed said it would start tapering

quantitative tightening in June.

UBS says not just the timing of the QT tapering, but also the amount is a dovish surprise.

The market had broadly expected a reduction of 30 billion from 60 billion, but the actual reduction is to be 25 billion.

In his press conference, Powell said that wasn't a form of easing, but a plan the FOMC has in place for a while.

But the bond market begged to differ.

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