Here's everything the Fed is expected to do Wednesday | Crypto Craft

  • Here's everything the Fed is expected to do Wednesday

    From cnbc.com

    This week’s Federal Reserve meeting will be remembered more for what policymakers say than what they do. That’s because markets have priced in a near-100% certainty — 98.9% to be exact, as of Tuesday afternoon — that the Federal Open Market Committee will announce a 0.25 percentage point interest rate increase when the two-day policy meeting wraps up Wednesday afternoon, according to CME Group data. While there’s often strong market consensus heading into FOMC meetings, it’s rarely this high. What markets are unsure of is where the Fed goes from here. Traders are betting the central bank will hike a ... (full story)

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EventsTrader
Feb 1, 2023 9:25am
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25 bps is done. Rate statement isn't expected to have any big surprises. The focus should be on Powell's press conference. He's likely going to deliver a hawkish message, although history shows he's had a hard time doing that. He's going to have to remain hawkish while balancing questions about the recent soft wage inflation data, terminal rate changes, and when the Fed plans to pause.

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unemployed
Feb 1, 2023 8:45am
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Even with an expected rate increase imminent, markets are acting like a dovish pivot is coming. But Powell remains determined to quash inflation.
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Trader#C056
Feb 1, 2023 9:24am
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The USD/JPY has been range-bound and a 25 basis point hike will likely have little impact depending on what message the Fed is sending the market. If there are clear hints that Fed may stop hiking rates soon, the USD may start to drop soon. If Fed remains vague, USD will remain range bound. There seems little to push USD to the upside. Wait for the Fed to update the market then do your analysis and decide your trade.
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