So the Fed meeting wraps up around 2pm Eastern time today and they will announce another 75 point increase in interest rates. All the talking heads are waiting (hoping) for some softer words during the Q&A. Like "we will continue to raise rates but at a slower pace" .... meaning 50 point increase at the next meeting.
Whenever these talking heads float the notion that the recent market rally is in anticipation of a Fed "pause" or "pivot", Powell comes out and crushes their hopes with hawkish talk like he did in Jackson Hole.
I expect him to continue to be vigilant against inflation, mainly because he got it so wrong with the "transitory" approach so he's still trying to gain back his credibility. I'd look for a bit of a down move this afternoon if he comes out hawkish. The question becomes, will the market be able to take the punch and recover. If it does, that would be like the recent lows made when the inflation number came in hot and the market managed a reversal.
Good trades all.
Powell brought the hammer down again on the bulls.
Traded lower all the way to the close. Rather bearish. No strong opinions here as to the lows being tested or taken out.
Thanks joj!
The Federal Reserve delivered its latest monetary policy announcement, with the central bank hiking rates by 75 basis points, or 0.75 percentage point. Fed Chair Jerome Powell also said that the central bank still has a ways to go before it wraps up its tightening campaign.