Skip to content

News   /   Uncategorized

[Platinum Insights] The Markets expectation and reality of the FOMC meeting today!

[Platinum Insights] The Markets expectation and reality of the FOMC meeting today!
August 21, 2023

Pre-market price action for the three major indices were trading around the flatline on Wednesday, as investors appeared quite reluctant to open significant positions ahead of the outcome of the Federal Reserve’s two-day policy meeting later today. 

The central bank will likely hike its key interest rate by 50 basis points following four consecutive 75 bps increases. Softer-than-expected US inflation data Tuesday added to evidence that price pressures are cooling while reinforcing this narrative of a less aggressive tightening. 

Still, a robust job market could force the Fed to lift rates higher than markets are currently pricing, something that investors will parse in the latest projections. 

Although yesterday’s price action was positive at the close, the reals story was how high the markets went up but then gave up a majority of the gains at the end of the day. The market is hoping (and hope is not a strategy) that the FED will be ending rate hikes or actually start cutting rates. 

This is what CNBC said in this morning’s story: “The signal that inflation may have peaked was positive for stocks as it means the Fed may be one step closer to halting interest rate hikes or switching to cuts, which would fuel equities.”  

I think the market may be ahead of itself with this thinking as Chairman Powell spoke last week at the Brookings institute where I heard something totally different. “The time for moderating the pace of rate increases may come as soon as the December meeting,” 

But he added that “the timing of that moderation is far less significant than the question of how much further we will need to raise rates to control inflation, and the length of time it will be necessary to hold policy at a restrictive level.” 

So, I heard we may be able to lower the rate to 50 BPS in December, but we may need to raise rates for a longer timeframe, then keep those rates at higher levels over time. We will know later today. 

Share this article:

More in Uncategorized:

Best of US Investors

The Democratization of Compute

A Paradigm Shift in Business and Investment Artificial Intelligence (AI) is undeniably transformative, poised to revolutionize the world as we...

Kerry Grinkmeyer in a suit standing in front of a stock chart with a bull on it

Kerry Grinkmeyer
July 23, 2024

Are Google and Meta Heading for a Stock Price Slump?

As an investor, it's crucial to keep a keen eye on market trends and potential shifts that could impact major players. Today, I want to discuss two tech giants that have long been darlings of Wall Street: Google and Meta. While they've enjoyed impressive growth and dominance in their respective fields, there are signs that their stock prices might face some headwinds in the near future.

As an investor, it's crucial to keep a keen eye on market trends and potential shifts that could impact major...

Trent Grinkmeyer in front of stock market with bull background

Trent Grinkmeyer
July 23, 2024

Best of US Investors

Are Google and Meta Heading for a Stock Price Slump?

As an investor, it’s crucial to keep a keen eye on market trends and potential shifts that could impact major...

Trent Grinkmeyer in front of stock market with bull background

Trent Grinkmeyer
July 23, 2024

Best of US Investors

Market Rotation or Market Crash? Analyzing Stock Market Trends

The stock market has been experiencing some turbulence lately, leading many investors to wonder: Are we seeing a market rotation,...

Trent Grinkmeyer in front of stock market with bull background

Trent Grinkmeyer
July 22, 2024

Best of US Investors

Become a Multimillionaire with $500 a Month in a Roth IRA

Have you ever wondered if it’s possible to become a multimillionaire by investing just $500 a month? It’s not just...

Kerry Grinkmeyer in a suit standing in front of a stock chart with a bull on it

Kerry Grinkmeyer
July 20, 2024

Fundamental to Sustain Life...Food

Opportunities in the food business

Opportunities in the food business I'm surprised I'm writing about a food company. Must be because I'm getting older or...

Trent Grinkmeyer in front of stock market with bull background

Trent Grinkmeyer
July 19, 2024

Register for the Best of US Investors Newsletter

Get daily financial news delivered to your inbox. Join today.

©2024 Best of US Investors. All rights reserved.

Site by KMA

Disclaimer

This Best of US Investors website is not and should not be considered investment advice. This Best of US Investors website is for informational purposes only. Nothing on this Best of US Investors website constitutes a recommendation to buy, sell or hold any security at any time. Always consult with a financial professional that is familiar with your specific situation before making any investment or trade.

Use of this Best of US Investors website is at your own risk. Best of US Investors makes no warranties about the accuracy, completeness or reliability of any content on this Best of US Investors website.

All the information on this Best of US Investors website is provided “AS IS”. Do not rely on any statements made on this Best of US Investors website.

In no event shall Best of US Investors be responsible or liable for any damage that occurs while using or reading any content on this Best of US Investors website.

Best of US Investors may have a position (long, short or neutral) in any security mentioned on this Best of US Investors website and therefore may realize significant gains in the event that the price of the security mentioned on this Best of US Investors website declines or appreciates.

Best of US Investors may buy and/or sell any security mentioned on this Twitter account at any time and for any reason. I may trade contrary or different to the information provided on this Best of US Investors website. You should assume that any email or post on this Best of US Investors website may cause the price of the security mentioned to appreciate or decline in a dramatic way.

Best of US Investors may continue to transact in any security mentioned on this Best of US Investors website an indefinite period of time after any email or post and such positions may be long, short or neutral at any time hereafter regardless of the initial view or positions stated on this Best of US Investors website.

In no event shall Best of US Investors be liable for any claims, losses, costs or damages of any kind including direct, indirect, punitive, exemplary, incidental, special or consequential damages, arising out of or in any way connected with any information presented on this Best of US Investors website. This limitation of liability applies regardless of any negligence or gross negligence of Best of US Investors or any company affiliated with Best of US Investors. You accept all risks in relying on the information presented on this Best of US Investors website.

If any statement in this legal disclaimer is held to be invalid or unenforceable, then the remaining provisions shall continue in full force and effect.

For more information, contact [email protected] .