FOMC September: Is the Fed About to Change the Market Game? 👀
The September FOMC meeting has put markets on alert.
August core CPI increased 0.3% month-over-month, while annual core inflation reached 2.4%. With inflation still above the Fed’s 2% objective, expectations for a 25-basis-point rate hike have risen sharply, with market pricing moving above 90% ahead of the decision.
But the bigger question is not only whether the Fed hikes. It is what comes next.
If the Fed delivers 25 bps, markets will likely focus on the tone of the statement and the guidance about future policy.
For BTC, tighter monetary conditions can reduce liquidity and risk appetite, potentially creating short-term pressure. Tech stocks may also face valuation pressure because higher rates increase the discount rate applied to future earnings. Gold could react differently depending on real yields, the dollar and inflation expectations.
For me, the key variable is the Fed's forward guidance rather than the headline hike itself.
I’ll be watching BTC price action, Treasury yields, DXY and gold for confirmation before considering any trade.
What are you watching after the FOMC decision?
#FedRateWatch
The September FOMC meeting has put markets on alert.
August core CPI increased 0.3% month-over-month, while annual core inflation reached 2.4%. With inflation still above the Fed’s 2% objective, expectations for a 25-basis-point rate hike have risen sharply, with market pricing moving above 90% ahead of the decision.
But the bigger question is not only whether the Fed hikes. It is what comes next.
If the Fed delivers 25 bps, markets will likely focus on the tone of the statement and the guidance about future policy.
For BTC, tighter monetary conditions can reduce liquidity and risk appetite, potentially creating short-term pressure. Tech stocks may also face valuation pressure because higher rates increase the discount rate applied to future earnings. Gold could react differently depending on real yields, the dollar and inflation expectations.
For me, the key variable is the Fed's forward guidance rather than the headline hike itself.
I’ll be watching BTC price action, Treasury yields, DXY and gold for confirmation before considering any trade.
What are you watching after the FOMC decision?
#FedRateWatch
