well,the day is finally almost here. What will they do? 1/4 pt move higher? 1/2 pt move higher? do nothing? who the hell knows. I think that no matter what the hell they do the market has rolled over and is in a downtrend. looking at a daily chart this downtrend started literally on the first trading day of 2022.
It’s not gonna matter what they do, it’s gonna be what they say that matters. Quarter point is in the books, let’s hear Powell’s remarks.
Nothing tomorrow matters regarding Fed. Only thing that matters is the war. THAT IS IT. You can tell by the moves on headlines. The Powell speak, if nothing has changed, will cause a pop in the market. But it will be taken right back down by the war. Sux to be a bull. Today was such a headfake it is not funny, just like that pop on Wednesday last week.
Most likely they will raise the interest rate by 25 basis points as everyone has expected. Can't see them raise more than that with what's going on and can't see them just do nothing about the inflation either. The effect on the market? Very little as this 25-basis point move is already priced in.
A .25 basis point rate hike is nothing to combat the raging inflation we have, they claim its still transitory, let's see what they say when the next CPI is double digits. This is all happening because they waited years to raise rates and secondly well you should know what happens when you print free trillions and make wallstreet continously happy. Now because of their unlimited QE and historical low rates we now have to deal with "transitory inflation" and a .25 rate hike tomorrow is absolutely worthless. They should have done a few emergency rate hikes the last year but nope they would rather wait, wait wait and wait. So tomorrow they raise .25 but because of the geopolitical nonsense going on they will try and talk a good game to now become as dovish as possible because if you add in a hawkish fed on top of what is currently in progress and you will have a beautiful recipe for a global economic collapse. So the fed better be careful how they break down their words tomorrow as markets are easily going to move probably a solid 3%. Overall expect a .25 rate hike and a fed trying to once again smooth things out with continous dovish statements. How the markets handle it is anyone's guess. If anything the markers are now more concerned about geopolitical differences than a .25 rate hike that should have happened years ago!!!