The FED FOMC rate cut decision will be announced tomorrow at 2pm ET.

I already told you in recent post about the market is expecting a 25 bps rate cut at this meeting, so it won't impact the market much.

What's even more important is Powell's speech, which will start at 2:30pm ET.

The job market is already cooked, and last week's CPI also came lower than expected.

Along with that, US economic activity is also slowing down due to the government shutdown.

All these things are enough for Powell to be dovish, but there's more to it.

For the first time in 2025, bank reserves at the Fed have fallen below $3 trillion.

This means the Fed will also be thinking about ending its QT program.

Even JP Morgan and Goldman Sachs are expecting that the Fed QT program will end at October's FOMC meeting.

This will probably be the first major risk-on signal since Q3 2019, when the Fed ended the QT program.

I'm expecting this FOMC meeting to be more dovish, which will provide the fuel for the next rally.

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