This kind of dull, directionless trading isn’t too uncommon heading into a Fed meeting, though it’s seldom this pronounced. Maybe things will get more exciting once Fed Chair Jerome Powell and company finish pondering the economy and get out in front of an audience tomorrow afternoon. The Fed’s decision is scheduled for 2 p.m. ET Wednesday.
A lot of the talk so far ahead of the Fed meeting centers on hopes among some investors that the Fed might not cut escorts Tokyo, but at least could hint at possible future cuts. However, some analysts have said the Fed might disappoint people who are thinking that way. The Fed could want to get a look at what happens at the G20 conference next week before making any big moves or even hinting at its next step, according to this school of thought.
The economy, on the other hand, does appear to be slowing, so that’s a tack the Fed could conceivably take if it delivers any dovish language tomorrow. Short of actually saying it’s Tokyo escort a rate cut, the Fed might let its “dot plot” do the talking. Many analysts expect this chart of future rate projections to take a noticeable downward curve from where we last saw it back in March, based on slowing U.S. and global growth.
The futures market sees odds of at least one rate cut by the July meeting at 88%, and chances of at least one cut by September at 97%. The only question, if we take the futures market as a good predictor, is exactly how much the Fed might move. There’s a better than 75% chance of rates falling 50 basis points from current levels between now and September, futures prices indicate, though it looks like it would happen in separate moves, not all at once.
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