FOMC Meeting of the Federal Reserve Proceeds as Scheduled

Summary

The Federal Reserve stated that the Federal Open Market Committee (FOMC) meeting was held as scheduled at 9:00 AM on Tuesday.CoinLive+ 2

Impact Analysis

So, the FOMC meeting went ahead as planned, which is interesting given the earlier chatter about possibly delaying it to incorporate more employment data. This suggests the Fed feels confident enough in their current data set to make a decision, despite the potential for incomplete information. The market is heavily leaning towards a 25-basis-point rate cut, with implied probabilities around 90% for a cut this month. This is likely to buoy equities, especially sectors sensitive to interest rates like transports and tech. However, the real story might be in the options market, where there’s a noticeable upside bias—investors are hedging with out-of-the-money calls, indicating a cautious optimism. Watch for volatility around the announcement, especially in the SPX and Treasury markets. If the Fed surprises with a pause, expect a sharp reaction in both equities and bonds. Bottom line—position for a rate cut but be ready for volatility if the Fed diverges from expectations.