If they don't raise tomorrow they openly admit that they are effectively held hostage by the banking industry. The only way banks can recoup their unrealized losses is by holding to maturity or for yields to go to back to 1% or so. Either way the Fed will be forced by the banking lobby. The only smart thing the Fed can do is to raise 25bps and to support a temporary raise of FDIC insurance.
If I was in a room right now with all the voting FOMC members, I would feed them shrooms, and convince them to raise rates by another 100 beeps. Then I would convince Powell, in his totally wasted state, to tell the Q&A folks that they are going to cut rates in July by 100 beeps. While I am doing that, I would be buying VX futures like a madman! AHAHHAH! WHOOHOO! Shrooms, baby! They are legal now in Oregon!
What kind of the "bank problems" are you referring to? Oh you mean the three regional banks that failed because they had undiversified businesses like SVB investing exclusively in the IT industry that was slowing down after the pandemic and the other two banks that were involved in crypto, an industry that we know has experienced tremendous volatility? Powell should grow a pair and do what it takes to bring down inflation, he would not pause the rate increase, especially when there is no problem with the banks.
Which sessions would you day trade the futures (index, gold, bonds ....)? 22 Mar - US session when the rate news is announced 23 Mar - the Asian session or 23 Mar - European session? I'd definitely avoid day trading in the US session. High chance the market is going to be choppy/spiky. And a high chance of losing $$$. I will definitely day trade the Asian and European sessions. By then, the market is most likely going to be less choppy / more decisive. High chance of earning $$$.
Hope they do 50. Everyone and their mother knew inflation was gonna get out of hand when the govt handed out money like no tomorrow. How did the pros at these regional banks not see that? What's the point if you are going to get bailed out of every bad decision ? Not a fan of Corporate Socialism.
Im thinking .25% but you just never know. I think the much bigger issue that the fed is more focused on than most of us is the possibility of the reacceleration of inflation. Thats why they will probably say rates will remain elevated for a sustained period of time.
%% I was wondering if that would be= ''no rate hike''?? Someone said on talk radio ''90% chance of 00.25 % hike'' Good YTD + 20 years qqq uptrend/some may sell it by end of day I dont think some[edit ''pros'']@ regional banks lost deposits due to SVB; i moved a hunk to SCHW early/ much better in SCHW money market rate/LOL before SVB many goofs Same with IBKR.........But i use regional banks, good coffee + customer service
I think the upcoming message will be crystal clear. Fed stays on the path of fighting inflation. Obviously how the market will take in this message will be key. But good trading opportunities will abound in case it misreads the Fed message.