FOMC Week

Ok traders we know the big story of the week is the FOMC, not the decision per say but the wording and conference after. We feel the terminal rate is getting close and that the FED PIVOT should be near. We have watched decades of these events and we know the FED has always acquiesced at the first sign of all hell breaking loose. This time we know their hand was forced by inflation and we also know that their marked to market losses are massive. So there is both the outward projection to the market of what they are trying to accomplish accompanied with the reality of their balance sheet capabilities. We are seeing multiple WSJ and other outlets already setting the stage for “losses don’t matter!” Well as Econemotions readers, you are already well informed and as always we are always ahead of the main stream sheep media.

Anyway 75bps is on tap as indicated by the CME FED Watch Tool:

Source: cmegroup.com