So it is 40 minutes until the FOMC interest rate announcement–it would be a real shocker if it was anything except ‘no rate hike’. Highly likely the wording of the announcement will be something like ‘while it appears some economic data is softening, employment remains strong and inflation continues to run above our 2% target rate so we stand ready to further hike rates if necessary’.
Then at 1:30 p.m. Powell will take the stand and all questioners at the presser will try to get him to commit to some sort of timeframe for rate cuts–only someone very foolish would make that kind of a commitment.
The 10 year treasury is off 4 basis points at 4.16%–while equities are about as flat on the day as is possible. Certainly both of these will have knee jerk reactions when the announcement is made–courtesy of the algos taking control of markets. In a couple hours we will know how ‘real investors’ react.
So I am watching my charts closely (not for any reason except to see the likely overreaction to the announcement). Buckle up!! Back to some level of normalcy tomorrow.