Fed Meeting Volatility Looms as Markets Price in Further Action
The upcoming Federal Reserve (Fed) meeting is expected to be closely watched by markets, particularly since they have already priced in a 25 basis point hike. However, this may not be enough for investors who are looking for further action from the Fed.
Fed Governor Kevin Warsh will face intense scrutiny during the press conference, which could lead to market volatility. Markets expect two more hikes by December and then two more in 2027, but it's unclear how Warsh can deliver on these expectations without forward guidance.
The FOMC statement and dot plot will be released at 2 pm ET, followed by the press conference at 2:30 pm ET. The author expects a dovish hike, which could lead to curve steepening, a fall in the US Dollar, and an increase in gold and the S&P 500.