The Fed’s decision is about to be released, and the market is pricing a higher chance of a rate hike, up to 94%
Interest rate swaps linked to the Federal Reserve meeting show that the market expects the probability of this rate hike at about 94%, implying that roughly 23 basis points of tightening have already been priced in. If the hike happens as scheduled, the federal funds rate range will rise to 3.75%–4%. If the Fed keeps rates unchanged, it could become the biggest “dovish surprise” at a routine meeting since the Fed began formally publishing its policy decisions in 1994.
Hassett said that both he and U.S. President Donald Trump “respect whatever the Fed decides to do, no matter what it is.” In an interview on Tuesday, Hassett, director of the White House National Economic Council, outlined reasons why the Fed should not raise rates, but also said, “we” respect whatever decision the Fed will make. Last Sunday, Hassett made a similar remark, saying that both Trump and he believe there is no reason to hike rates, but he would support 100% any decision the Fed makes, and that Trump respects Powell and the Fed’s independence. It is important for the Fed to maintain the status quo ahead of the election.
Meanwhile, the market has started to reassess the AI-driven stock rally, while also absorbing the impact of rising oil prices and the possibility of a rate hike by the Fed this week.
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Only the stock prices of international large corporations are the real opportunities—we will patiently wait for prices to pull back!
$NVDA.US
$META.US
Interest rate swaps linked to the Federal Reserve meeting show that the market expects the probability of this rate hike at about 94%, implying that roughly 23 basis points of tightening have already been priced in. If the hike happens as scheduled, the federal funds rate range will rise to 3.75%–4%. If the Fed keeps rates unchanged, it could become the biggest “dovish surprise” at a routine meeting since the Fed began formally publishing its policy decisions in 1994.
Hassett said that both he and U.S. President Donald Trump “respect whatever the Fed decides to do, no matter what it is.” In an interview on Tuesday, Hassett, director of the White House National Economic Council, outlined reasons why the Fed should not raise rates, but also said, “we” respect whatever decision the Fed will make. Last Sunday, Hassett made a similar remark, saying that both Trump and he believe there is no reason to hike rates, but he would support 100% any decision the Fed makes, and that Trump respects Powell and the Fed’s independence. It is important for the Fed to maintain the status quo ahead of the election.
Meanwhile, the market has started to reassess the AI-driven stock rally, while also absorbing the impact of rising oil prices and the possibility of a rate hike by the Fed this week.
—————————————————————————
Only the stock prices of international large corporations are the real opportunities—we will patiently wait for prices to pull back!
$NVDA.US
$META.US
