📈 FOMC DECISION 2:00 PM

Here's how to prepare.

FOMC Decision + Press Conference

At 2PM ET, we will receive the FOMC decision.

There is a 98% chance that we see a 25bp rate cut, so that is our expectation. Anything outside of this would be extremely shocking.

Above is a zoomed out look at interest rates and how they have changed. While we have recently seen cuts, we are a far cry from where we were post-COVID.

Other FOMC Data to Watch For

There are two other things that you need to watch for when FOMC is released and at the press conference at 2:30 PM.

First, we will receive an updated Dot Plot. This gives us an updated look at where each Fed member expects interest rates to be over the course of the next few years.

With a lot of uncertainty regarding the recent economic data we have seen (such as hot PPI and hot unemployment), the market is expecting a range of responses which would signal uncertainty and could be bearish for the market. You need to watch this closely because it can/will move the market.

The other thing you need to keep an eye on is how Powell speaks about future rate cuts. For now we are expecting no cuts (see chart below) but if his sentiment goes against what the market is expecting, it could drive uncertainty.

In tonight’s video I dive deeper into FOMC, the state of the market, and what I am trading right now. There are specific sectors that look extremely bullish so I recommend you watch: