High volatility is anticipated today, Wednesday, September 17, with the Fed's 1:00 PM EST Interest Rate Decision and Monetary Policy Statement, followed by the 1:30 PM EST FOMC Press Conference. A 25bps rate cut is widely expected amidst a weakening labor market and sticky inflation. Markets will scrutinize the dot plot and Powell's forward guidance for future policy trajectory. Tomorrow, Thursday, Initial Jobless Claims at 7:30 AM EST offer labor market insights. Next Tuesday, S&P Global Manufacturing and Services PMIs at 8:45 AM EST are key growth indicators, with business confidence subdued by tariffs.
Traders should prepare for significant market reactions around Wednesday's Fed announcements, particularly to any surprises in the dot plot or Powell's tone. A dovish stance could fuel equities and gold, while hawkish signals might trigger a pullback. Position for potential volatility in USD, equities, and bonds.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.