The Fed has left rates steady while signaling 2 potential hikes by the end of 2023. Here is what to do with your stocks, bonds, and digital assets, according to top Wall Street and crypto investors.

Main Idea: The Fed kept rates near zero but signaled earlier hikes and higher inflation, while Linda Bakhshian of Federated Hermes said investors should favor value, cyclical, and higher-quality stocks.

Key Points:

• The Fed left interest rates unchanged and kept buying bonds, but now expects possible rate hikes by late 2023.
• Markets reacted badly, with stocks, Treasury bonds, and bitcoin all falling after the announcement.
• Bakhshian said the economy should favor stocks with pricing power, and she pointed to value and cyclical names.
• Other Wall Street views split on bonds and crypto, with some seeing stability ahead in fixed income and others urging caution on longer-term debt.