📈 Powell Speaks...

These are the important takeaways from the Fed interest rate decision

Fed Interest Rate Decision

The Fed announced that they are going to be keeping rates unchanged, which was expected.

Powell’s speech didn’t offer up much information that we didn’t already know. He confirmed that he doesn’t foresee rate hikes and that he isn’t seeing stagflation.

However the question remains of when we may see cuts, and that date looks to be inching further and further away.

Note that since the start of 2024, we have seen nothing but an uptick in CPI.

Market Impact

You can see below that into this decision, the market ran up significantly, which is strange because this decision had a 98% chance of happening - it was expected.

Just as quickly as we ran up, we came crashing back down, closing near the low of the day.

This shows that institutions are trying to disguise what they are doing. They represent the majority of the action in the last hour of trading, so this action is worrisome as it signals that institutions are actually selling.

We are forming a bear pendant that looks like it could break lower.

Watch my full analysis of Powell’s speech here: