Fed FOMC Meeting: Interest Rates in Focus as Nasdaq 100 Tests Key Support

The Federal Reserve's (Fed) upcoming FOMC meeting is expected to be a closely watched event, with investors looking for clues on potential interest rate hikes. According to economists and traders, there is a high confidence that the Fed will keep rates unchanged in the 3.50-3.75% range, but there is also a possibility of a surprise hike.

The Nasdaq 100 index is particularly sensitive to interest rate expectations, and its current price action may be influenced by the FOMC's decision. The index has been testing the 38.2% Fibonacci retracement level at 27,750, and a hawkish outlook could lead to a breakdown of this support.

Chairman Kevin Warsh is expected to deliver a press conference after the meeting, where he will likely be asked about the Fed's stance on inflation and interest rates. His response will be closely watched by traders, who are looking for hints on the potential for future rate hikes.