#FOMCMeeting đ¨
đ¨ All eyes are on tomorrowâs #FOMCMeeting as the Federal Reserve gears up to announce its next interest rate decision. While inflation has shown signs of cooling, markets remain divided on what Powellâs next move will be â a rate cut, a pause, or a surprise hike.
The Fed has held rates steady for the past several meetings, citing sticky inflation and resilient economic data. However, recent CPI and PPI prints have trended downward, strengthening the case for a potential cut later this year â though it may be too soon for a move tomorrow.
Adding fuel to the fire, former President Trump has ramped up political pressure, urging Chair Powell to cut rates and suggesting he might âforce somethingâ if inflation continues to drop and the Fed stands pat. This kind of rhetoric, while not new, could add tension between monetary policy independence and political influence.
So how should investors position themselves ahead of the decision?
đ Personally, Iâm staying nimble. Iâve reduced exposure to rate-sensitive assets like regional banks and added to gold and long-duration Treasuries as a hedge. If the Fed surprises with a dovish tone, risk-on assets could rally. But a hawkish hold or language hinting at delayed cuts could trigger a selloff â especially in tech and crypto.
Markets may not get the cut they want, but theyâll be dissecting every word of Powellâs press conference.
đŹ Whatâs your outlook ahead of the #FOMCMeeting ? Rate cut, pause, or are we in for a shock?