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I don't think the stock market in particular is the target, although having said that, the stock market DOES represent the wider economy and what the Fed is fighting against - excess liquidity - so it's natural that it, along with other assets, would fall once credit tightens.

I think we should see what banks do with this info. Given much of the economy is reliant on credit, and the Fed has signalled that short term rates are going to go higher for longer (really until the end of 2024), some banks may have to review their profitability/ability to extend loans.

How many expected rates to remain this tight for this long?

The decision to pause is confusing. It's been done by Canada and Australia with negative effect (persistent inflation). The Fed argues that they need more time for data (the same argument used in Aus), but how can an additional 6 weeks make or break your decision for an additional 25bps? How can you KNOW the economy needs additional hikes, yet not act on it? Is there something else that we don't know?

The only thing I can think of is student loans coming back into play from July 1 (I think repayments won't be expected until September though). That's going to be a whole bunch of middle class workers losing income to another debt which will probably have some tightening effect on discretionary spending.

Still though, it's only another 25bps...