Fed Day
The biggest day in years.
FOMC meetings often feel overhyped.
At least over the last 18 months as the Fed has held rates for an extended period of time. Granted, there was volatility in the initial stages of the rate hike cycle in 2022, but since then policymakers have done a good job in telegraphing intentions and making it well known to markets what they were going to do meeting to meeting.
Not this time.
Markets have never been more split on a rate decision in history.
The implied market odds of a 50bps cut, using options and swaps pricings, sits at 66%, hard from a concrete indicator.
But it gets even more confusing when one takes a look at Bloomberg's poll of over 100 market participants, which shows that over 90% expect a 25bps cut.
So which is it?
Well, its hard to know for sure, but here is our opinion and what actions investors should take as we enter the third and final phase of this historic interest rate cycle...
